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Global benchmark Brent crude futures rose this morning, moving nearly 8 percent higher so far this week and set for a second weekly gain, spurred by hopes of a deal among oil-producing countries to tackle a growing supply glut.

Oil futures tested their upward potential on Thursday morning, breaking above Wednesday's highs. Market sentiment was somewhat more bullish after the release of the DOE's data on US oil inventories and against the backdrop of speculations over a possible joint action of OPEC and non-OPEC producers to reduce output. Although analysts remain sceptical, the change in sentiment made investors avoid further short positions. As expected, the 21-period moving average was the key resistance at oil markets on Thursday. After Brent had already exceeded this mark in the morning, Gasoil and WTI followed suit in the course of the day. The technical buying that was triggered by the break above the 21-period moving average generated more technical upward potential. Along with the technical factors, the Russian Energy minister Alexander Novak's comments on a possible meeting between OPEC and Russia in February pushed oil prices higher. Mr. Novak said that output cuts of approximately 5% might be discussed. Still, analysts avoid being too optimistic. Moreover, OPEC officials Thursday evening denied both the plan of a meeting and the alleged proposal by Saudi Arabia to discuss output cuts of up to 5%. That is why the sharp price increase oil futures saw in the early afternoon was erased in late-afternoon trading. Nevertheless, oil futures held steady, settling in the black.

ICE Gasoil contract for February delivery settled at 307.75 USD on Thursday, this is 15.75 USD above Wednesday's settlement. With some 56.000 deals, the traded volume (front month) was above average.

The lines of the Stochastic indicator are drifting apart providing slightly bullish cues. The RSI remains in neutral territory, though. By breaking above the 21-period moving average oil futures generated more potential up to the upper Bollinger Bands. The consolidation phase which set in after last week's rally thus ended on Thursday. That is why we assess the technical constellation as slightly bullish. Even so, the 21-period moving average is likely to keep playing an important role. If oil futures settled above this marker, a test of the upper Bollinger Bands would be favoured. If the 7-period and the 21-period moving averages cross, there would be a buying signal.

U.S.

Nymex above average: Global benchmark Brent crude futures rose on Friday, moving nearly 8 percent higher so far this week and set for a second weekly gain, spurred by hopes of a deal among oil-producing countries to tackle a growing supply glut.

Houston (ex-wharf indications 29-1)
380cst $137
180cst $210
MGO $335

New Orleans (ex-wharf indications 29-1)
380cst $148
180cst $201
MGO $335

Singapore (delivered indications 29-1)

Brent is up with +$1.51 for Apr contracts. Singapore paper bullish with +$12.50 for 180cst with +$13.00 for 380cst for Feb, and for Mar 180cst +$12.25 and 380cst with +$13.00 with MGO contracts Feb with +$1.03 and in Mar with +$1.14 .The cargo market is bullish with 180cst +$9.49, 380cst with +$9.22 and MGO with +$1.95.

380cst $162
180cst $165
MGO $287

Fujairah (delivered indications 29-1)

380cst $167
180cst $176
MGO $438

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $163
MGO 0.1%S: $300