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Crude oil rose smartly in Asia this morning with shares in Shanghai recovering after a sharp morning dip.

Market fundamentals were clearly bearish on Thursday morning. Moreover, the technical constellation indicated some downward potential. Renewed turbulences at China's stock markets pushed oil futures at ICE and NYMEX down early Thursday morning, with WTI breaking below 34.00 USD. This generated fresh technical potential down to at least 32.40 USD - the low hit December 19, 2008. WTI hit this support rather quickly, even breaking below this marker. Oil futures dropped back to 12-year-lows, trading below the Bollinger Bands. This reduced the technical selling pressure, favouring short-covering instead. Investors soon cut their short-positions, sending oil futures back up again around noon. Even though market fundamentals remained bearish on Thursday, market players kept liquidating their short-positions and so oil futures pared their losses by Thursday evening.

ICE Gasoil contract for January delivery settled at 316.00 USD on Thursday, this is 1.25 USD above Wednesday's settlement. With some 49,300 deals, the traded volume (front month) was below average.

The lines of the Stochastic indicator have crossed at the Brent and the WTI chart. The indicator is thus giving off a buying signal. The signal might be confirmed at the Gasoil-chart and the RSI might provide bullish cues in the course of the day if it exceeds 30%. Short-covering is not unusual ahead of the week-end, particularly after a week of hefty losses. The technical signals of the Stochastic indicator are this morning prompting investors to cover their short positions. We thus assess the technical constellation as neutral to bullish. If the Stochastic indicator at the Gasoil chart and the RSI confirm the buying signals that are already existing at the crude oil charts, it would add to the bullish note of the technical constellation.

U.S.

Nymex above average: Oil futures were slightly buoyed by short-covering in East Asia and Globex electronic trading this morning. With the technical constellation providing some bullish signals and Chinese stock markets having stabilised, traders cut their short-positions ahead of the weekend. However, short-term resistances have meanwhile limited the upside. The traded volume at NYMEX is far above average this morning. Market participants are waiting for the European financial and forex markets to open today as well as for news regarding the tensions between Iran and Saudi Arabia. Moreover, investors will closely eye the release of data on the US labour market due this afternoon.

Houston (ex-wharf indications 8-1)
380cst $136
180cst $207
MGO $357

New Orleans (ex-wharf indications 8-1)
380cst $164
180cst $227
MGO $370

Singapore (delivered indications 8-1)

Brent is up with +$1.48 for March contracts. Singapore paper is bullish with +$9.75 for 180cst with +$9.00 for 380cst for Jan, and for Feb 180 cst +$9.50 and 380cst with +$9.50 with MGO contracts Jan with +$0.80 and in Feb with +$0.88 .The cargo market is bullish with 180cst -$12.49, 380cst with -$11.86 and MGO with -$3.12.

380cst $161
180cst $164
MGO $310

Fujairah (delivered indications 8-1)

380cst $148
180cst $176
MGO $499

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $138
MGO 0.1%S: $283