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Oil markets rose this morning as strong seasonal demand from China outweighed weak consumer data from Japan, although analysts said that the slowing global economic outlook meant that oil prices would likely remain low for months to come.

ICE and NYMEX futures traded in a narrow range in electronic trading on Thursday. Neither the neutral technical constellation nor the few fresh fundamentals were apt to give the market some direction. If the reopening of the two U.S. pipelines and the postponement of maintenance work at the Buzzard oil field in the North Sea opened some downside to oil, prices could still not leave their tight range. Only in the afternoon oil futures started to decline, breaching their first support lines in the wake of the slide of the WTI contract that lost ground after news of an incident at a 350.000 bpd ExxonMobil refinery in Texas. When the supports at 460.00 USD (gasoil) and 47.35 USD (Brent) proved strong, prices rebounded during NYMEX session. A Genscape report on an expected 0.5 mbpd draw in Cushing crude stocks in the week ending Tuesday, September 22nd lent additional support. But the gains were limited in late NYMEX trading by the FED's comments of a possible interest hike in 2015 and news that Iran aims to increase its crude exports as early as the beginning of December.

ICE Gasoil contract for October delivery settled at 465.25 USD on Thursday, this is 8.00 USD below Wednesday's settlement. With some 52,600 deals the traded volume (front month) was on average.

Neither Stochastic nor RSI have triggered fresh signals this morning. The two indicators are thus being seen neutral. The Stochastic indicator at the gasoil chart could trigger a bearish signal in the course of the session, should its two lines cross. The WTI's 7 and 21 days moving average lines could also cross and trigger a selling signal, so these indicators should be closely watched today. But as long as no fresh signals are being triggered prices will be stuck within their lateral range. We assess the technical constellation therefore as neutral today.

U.S.

Nymex above average : Oil futures extended last night's gains in Asian trading hours and Globex electronic trading this morning, supported by the latest report of Genscape. The analysts expect Cushing oil stocks to have dropped in the week ending Tuesday, September 22nd. The traded volume at NYMEX is slightly above average this morning. Investors are now waiting for the European financial and forex markets to open and for the release a few economic indicators in the U.S. and the Eurozone. They will also closely watch Baker Hughes' latest rig count to be released after office hours.

Houston (ex-wharf indications 25-9)
380cst $223
180cst $267
MGO $475

New Orleans (ex-wharf indications 25-9)
380cst $235
180cst $285
MGO $465

Singapore (delivered indications 25-9)

Brent is losing with -$1.38. Singapore paper dropping with -$5.20 for 180cst with -$5.50 for 380cst for Oct, and for Nov 180 cst -$5.50 and 380cst with -$5.85 with MGO contracts Oct losing with -$1.45 and in Nov with -$1.43. The cargo market is gaining with 180cst +$11.38, 380cst with +$9.82 and MGO with +$2.15.

380cst $229
180cst $247
MGO $448

Fujairah (delivered indications 25-9)

380cst $239
180cst $262
MGO $546

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $218
MGO 0.1%S: $433