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Oil prices steadied this morning after bouncing back from six-and-a-half-year lows on recovering equities markets, strong U.S. economic growth and news of low crude supplies from Nigeria.

The technical constellation had already been slightly bullish on Thursday morning, indicating tests of the upside. As expected, oil futures then tested their upward potential as several technical buying signals had developed earlier this week. Market players that had bet on falling prices over the past few days and weeks took this for a sign to cover their short positions. This short-covering lead to technical buying which increased when Brent and WTI broke above their resistances at 44.80 USD and 40.45 USD, respectively. The important resistances near the MA7 were breached as well and so, a technical rally pushed prices higher. More and more traders cut their short positions. Moreover, news were released in the afternoon saying that an extraordinary OPEC-meeting had been requested. Besides, economic indicators out of the USA surpassed expectations. Later in the afternoon, Nigeria declared Force Majeure over its deliveries of Bonny Light crude. Oil futures kept track of their gains, bolstered by these bullish fundamental news, but the technical constellation was the main driver of oil markets on Thursday. Not only finished oil futures with new highs but Brent and WTI also saw the sharpest intraday-rise in three years.

ICE Gasoil contract for September delivery settled at 445.75 USD on Thursday, this is +21.00 USD above Wednesday's settlement. With some 60,600 deals the traded volume (front month) was slightly below average.

After the Stochastic indicator had given a buying signal at the Brent and the WTI chart earlier this week, and the RSI had also given a bullish signal at the WTI chart, the indicators on Thursday turned bullish at the Gasoil chart as well. Moreover, oil futures have exceeded several important resistances, in part also the upper limits of their long-term downtrends, generating more upward potential. The indicators remain bullish this morning whilst WTI is testing the MA21. This is the next important hurdle for oil futures. If WTI sustainably breaches this marker, further technical buying might be triggered. Even though the technical buying signals have already been generated Thursday evening, we assess the technical constellation as bullish this morning, the more so as oil futures have already broken above Thursday's highs this morning.

U.S.

Nymex above average: Oil futures kept track of their gains this morning in Asian and electronic trading, still buoyed by a bullish technical constellation and some bullish fundamentals. The traded NYMEX volume is far above average at this time of day. Investors are now waiting for the European financial and forex markets to open as well as for the release of today's economic indicators.

Houston (ex-wharf indications 28-8)
380cst $209
180cst $338
MGO $481

New Orleans (ex-wharf indications 28-8)
380cst $221
180cst $275
MGO $451

Singapore (delivered indications 28-8)

WTI is bullish with +$2.31. Singapore paper is up with +$16.50. for 180cst with +$16.45 for 380cst for Sep, and for Oct 180 cst +$15.50 and 380cst with +$15.45 with MGO contracts Sep gaining with +$2.39 and in Oct with +$2.37. The cargo market is bullish with 180cst +$10.68, 380cst with +$9.85 and MGO with +$0.93.

380cst $231
180cst $240
MGO $431

Fujairah (delivered indications 28-8)

380cst $229
180cst $259
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $223
MGO 0.1%S: $423