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U.S. crude oil futures fell in Asian trade this morning, heading lower after posting the first significant gains for 2016 in the previous session, as the prospect of additional Iranian supply looms over the market.

Oil futures at ICE and NYMEX were weighed down by bearish factors on Thursday morning. Market fundamentals in particular failed to provide any reason whatsoever for oil prices to show an upward correction. The DOE's bearish report on US oil inventories (Wednesday afternoon) and the possibility of the sanctions against Iran being lifted already this weekend. Besides, the technical constellation didn't provide any fresh cues. After WTI had bounced off its key support at 30 USD on Tuesday, investors tended to cover their short-positions near this level on Thursday, too. The fact that the Brent contract with delivery in February and options on WTI expired on Thursday favoured short-covering as well. The bearish market fundamentals unsurprisingly prevented a price rally but oil futures nonetheless tended to the upside in the evening. That is why futures settled clearly in the black.

ICE Gasoil contract for February delivery settled at 283.25 USD on Thursday, this is -4.25 USD below Wednesday's settlement. With some 83,100 deals, the traded volume (front month) was above average.

The Stochastic indicator remains neutral at the Gasoil chart, giving off a buying signal at the Brent and the WTI chart, though. The lines of the indicator have crossed which is why the indicator can be interpreted as bullish. However, the RSI has not yet confirmed the buying signals. It stayed below 30%. Since the market is considerably oversold, short-covering and technical buying might foster oil futures from a technical perspective. We are currently assessing the technical constellation as slightly bullish against the backdrop of the buying signals the Stochastic indicator has given off. The buying signals might be skewed by the fact that the Brent contract with delivery in February expired on Thursday evening and that WTI options expired, too. We would like to note that market fundamentals are currently outweighing the technical constellation.

U.S.

Nymex above average: In spite of the slightly bullish technical constellation, oil futures have pulled back from Thursday evening's highs in East Asia and Globex electronic trading this morning, weighed down by the bearish fundamentals. 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 the release of a raft of economic indicators. They will also closely eye news on the possible lift of sanctions against Iran.

Houston (ex-wharf indications 15-1)
380cst $123
180cst $198
MGO $334

New Orleans (ex-wharf indications 15-1)
380cst $139
180cst $195
MGO $343

Singapore (delivered indications 15-1)

Brent is up with +$0.11 for March contracts. Singapore paper is bullish with +$5.25 for 180cst with +$6.70 for 380cst for Jan, and for Feb 180 cst +$4.50 and 380cst with +$4.40 with MGO contracts Jan with +$0.30 and in Feb with +$0.19 .The cargo market is bearish with 180cst -$4.67, 380cst with -$4.62 and MGO with -$1.21.

380cst $147
180cst $152
MGO $277

Fujairah (delivered indications 15-1)

380cst $141
180cst $159
MGO $469

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $115
MGO 0.1%S: $258