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Crude oil futures declined this morning, as traders cashed out of the market after prices scored their biggest two-day percentage gain since 2009 last week.

After Thursday's sharp rise, oil futures at ICE and NYMEX consolidated in a rather narrow range on Friday morning. Whilst market players had covered their short positions on Thursday, they at first stuck to the sidelines on Friday. Prices were still bolstered by the news on Venezuela having requested an extraordinary OPEC meeting and on the state of Force Majeure having been declared on crude oil deliveries from Nigeria. The supports at 453.00 USD Gasoil and 41.80 USD WTI limited the downside and in the course of the evening investors renewedly covered their short positions. Oil futures thus broke above earlier highs surpassing the downtrends which had remained intact until then. The important psychological resistances at 45.00 USD WTI and 50.00 USD Brent were breached in the evening and so oil futures kept track of Thursday's price rally. Later on Friday evening, the Baker Hughes rig count was released. This report didn't have any larger impact on prices, though. Even though analysts stuck to their bearish assessment of the market situation, short covering renewedly prevailed on Friday and so, oil futures settled at last week's highest levels.

ICE Gasoil contract for September delivery settled at 477.50 USD on Friday, this is +31.75 USD above Wednesday's settlement. With some 51,000 deals the traded volume (front month) was slightly below average.

Last week, the Stochastic indicator and the RSI provided buying signals. Moreover, oil futures broke above their downtrends. Meanwhile, the RSI is neutral again and the bullish bias of the Stochastic has decreased as its lines are no longer drifting apart. Nevertheless, the Stochastic indicator is still slightly bullish and fresh upward potential was generated when oil futures broke above important resistances. Even though there are no fresh cues, the technical constellation can be assessed as rather bullish at the moment as the downtrends no longer limit price levels. However, Brent has already found strong resistance again between 51.00 and 51.10 USD.

U.S.

Nymex above average: Oil futures edged lower this morning in Asian and electronic trading after two days of rallying. Many traders in the U.K. will be absent today due to the Summer Bank holiday. 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. Moreover, the EIA will release a report on US oil production.

Houston (ex-wharf indications 31-8)
380cst $212
180cst $338
MGO $473

New Orleans (ex-wharf indications 31-8)
380cst $225
180cst $273
MGO $454

Singapore (delivered indications 31-8)

WTI is bullish with +$1.97. Singapore paper is up with +$14.50. for 180cst with +$14.00 for 380cst for Sep, and for Oct 180 cst +$14.00 and 380cst with +$14.05 with MGO contracts Sep gaining with +$1.90 and in Oct with +$1.87. The cargo market is bullish with 180cst +$16.23, 380cst with +$17.10 and MGO with +$2.37.

380cst $241
180cst $249
MGO $436

Fujairah (delivered indications 31-8)

380cst $242
180cst $275
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

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