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Crude oil prices held steady to lower in early Asia this morning with thye market looking ahead to U.S. data on working rigs as producers weigh the cost of pumping more oil into an oversupplied market.

Oil futures tended to the upside on Thursday morning as the DOE's report on US petroleum stocks had come in bullish on Wednesday and the technical constellation provided bullish cues as well. Prices already increased in the morning, breaching first resistances. This triggered more technical buying and stop-loss orders which sent oil futures to their highs around noon. Since the euro weakened versus the dollar against the backdrop of the FOMC's statement following the meeting on monetary policy in the USA on Wednesday evening, domestic prices in the Eurozone also became more expensive whereas upward potential at oil markets was limited. The steadier greenback makes oil futures more expensive for investors outside the USA, dampening demand. In the course of the afternoon, oil futures at ICE and NYMEX slowly shed some of their gains. They came under more pressure, when some oil majors announced that they expected oil prices to remain on a lower level for a longer period. Brent and WTI futures lost more ground in the afternoon than product futures but, overall, all contracts settled near the levels they had at the open or slightly below.

ICE Gasoil contract for August delivery settled at 493.75 USD on Thursday, this is 2.00 USD below Wednesday's settlement. With some 44,200 deals the traded volume (front month) was above average.

The buying signals the Stochastic indicator had given at the ICE and NYMEX charts have waned by now as the lines of the indicator are converging. At the Brent and the Gasoil chart, the MA 7 proved strong, limiting the upside. That is why the downtrends of the two contracts are still intact. These downtrends are limited by the lower Bollinger Band and the MA 7. WTI is already testing the MA 7. If the contract drops below this line, a selling signal might be generated. Even though the RSI has a slightly bullish impact after having surpassed 30% at the WTI chart, we are still assessing the technical constellation as neutral as the downtrends at the ICE charts are still intact. However, if WTI breaks below the MA 7, technical selling pressure should predominate in the course of the day. If the RSI gives a confirming buying signal at the Brent or the Gasoil chart and if these contracts sustainably rise above their MA 7, technical buying should predominate.

U.S.

Nymex on average: The temporarily bullish cues provided by the DOE's data on US oil inventories on Wednesday have meanwhile been absorbed and so oil futures are increasingly tending to the downside again, the more so, as the dollar steadied. The traded volume at NYMEX is on average at this time of day. Investors are now waiting for the European financial and forex markets to open as well as on the economic indicators on the agenda today.

Houston (ex-wharf indications 31-7)
380cst $270
180cst $465
MGO $507

New Orleans (ex-wharf indications 31-7)
380cst $280
180cst $355
MGO $489

Singapore (delivered indications 31-7)

WTI is bearish with -$1.09. Singapore paper is down with -$6.40 for 180cst up with -$7.25 for 380cst for Aug, and for Sep 180 cst -$7.30 and 380cst with -$6.50 with MGO contracts Aug losing with -$0.88 and in Sep with -$0.88. The cargo market is bullish with 180cst +$8.07, 380cst with +$7.75 and MGO bullish with +$1.27.

380cst $287
180cst $299
MGO $460

Fujairah (delivered indications 31-7)

380cst $295
180cst $329
MGO $684

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $271
MGO 0.1%S: $453