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Crude oil prices gained further in Asia this morning spurred by what appear to be a renewed effort by major producers to coordinate a cut in global output.

Oil futures were dragged down by the bearish technical constellation and market fundamentals on Thursday morning. WTI in particular came under pressure as US crude oil stocks in the central storage place in Cushing, Oklahoma, had reached a new all-time high and operative storage capacity had reached 89.9% in the week ending February 5. Market participants stayed on the side-lines, though, as the change in the Gasoil front month added to volatility, making oil futures susceptible to upward corrections. In the early hours of US-trading, short-coverings pushed prices higher after WTI had tested its 13-year-low near 26.19 USD. From the technical perspective, the RSI gave off a buying signal at the Gasoil chart which bolstered product futures. Those contracts were slightly supported by refinery shut-downs anyway. In contrast to this, Brent and WTI remained rather weak in the evening. The US-crude oil contract seized its potential down to the next support at 26.00 USD, hitting a fresh 13-year-low at 26.05 USD. In the course of the evening, oil futures changed direction as the United Arab Emirates alluded to output cuts. The comments triggered short-covering which sent oil futures back up into the black. Oil futures thus settled near fresh highs.

ICE Gasoil contract for February delivery settled at 285.50 USD on Thursday, this was 0.25 USD above Wednesday's settlement. With some 113,300 deals, the traded volume (front month) was above average.

The Stochastic indicator is giving off buying signals at ICE and NYMEX charts after its lines had sustainably crossed at all charts. The RSI exceeded 30% at the Brent and the Gasoil chart, giving a bullish signal as well. The lines of the 7-period and the 21-period moving average might generate a selling signal, however, if they cross. The crude oil futures are currently still moving within a downtrend below important resistances. Given the buying signals of the Stochastic indicator and the RSI, we assess the technical constellation as bullish. The signals point to further tests of the upside. Such tests might gain traction if oil futures break above further resistances. Moreover, the RSI might give off a confirming buying signal at the WTI chart if it surpasses 30%.

U.S.

Nymex above average: Oil futures gained ground overnight and remained near their highs in Asia and in early electronic trading this morning. However, they have meanwhile shed some of their gains, with the upside being limited by strong resistances. The traded volume at NYMEX is far above average this morning. Market players are now waiting for the European financial and forex markets to open as well as on the economic indicators which are on the agenda today. They are also waiting for further comments regarding possible output cuts.

Houston (ex-wharf indications 12-2)
380cst $128
180cst $199
MGO $330

New Orleans (ex-wharf indications 12-2)
380cst $140
180cst $183
MGO $323

Singapore (delivered indications 12-2)

Brent is now gaining with +$0.76 for Apr contracts. Singapore paper is up with +$2.75 for 180cst with +$2.50 for 380cst for Feb, and for Mar 180cst +$2.25 and 380cst with +$2.75 with MGO contracts Feb with +$1.94 and in Mar with +$1.76 .The cargo market is gaining with 180cst +$1.94, 380cst with +$2.06 and MGO with +$0.08.

380cst $153
180cst $160
MGO $278

Fujairah (delivered indications 12-2)

380cst $153
180cst $171
MGO $420

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $142
MGO 0.1%S: $301