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Brent crude reached fresh 2016 highs this morning and was poised for its biggest monthly gain in seven years as a weak dollar and falling U.S. production tempered concerns about a lingering excess of physical oil.br>
After oil futures had already posted fresh year highs on Tuesday and Wednesday, they renewedly tested their upward potential on Thursday. Although the overall technical constellation was neutral, the Stochastic indicator gave off a buying signal which pushed oil futures higher. The advancing euro/dollar favoured price increases as it makes oil, which is priced in dollar, cheaper for investors out of the euro zone. Gasoil was the first contract to climb to the highest level year-to date. Brent and WTI only hit fresh year-highs in the afternoon, when the crude oil futures were bolstered by reports on possible output losses in Venezuela. Goldman Sachs analysts raised doubts over the sustainability of the rise in oil prices but futures kept track of their uptrends in the evening, settling near their highs.

ICE Gasoil contract for May delivery settled at 415.25 USD on Thursday, this was 12.75 USD above Wednesday's settlement. With some 35,700 deals, the traded volume (front month) was below average.

Oil futures traded on the ICE and NYMEX trading platforms reached fresh year-highs on Thursday. They continued moving within their uptrend between the 7-period moving average and the upper Bollinger Band. The Stochastic indicator is still bullish at the Gasoil chart, whereas it has already lost some of its influence at the Brent and the WTI chart. The divergence between the development of oil prices and the RSI or the Stochastic indicator, respectively, has meanwhile eased. Both indicators are deeply in overbought territory. They might provide fresh selling signals in the course of the day. However, a bearish signal will only be triggered if the RSI drops back below 70% or if the lines of the Stochastic indicator cross at the Brent and the WTI charts. Since the uptrends are still intact, we are currently assessing the technical constellation as neutral to bullish.

U.S.

Nymex above average: Oil futures have already tested Thursday's highs (that is this year's highs) in East Asia and in Globex electronic trade this morning, bolstered by the rising euro/dollar. The traded volume at NYMEX is far above average this morning. Investors are waiting for the European financial and forex markets to open as well as for a raft of economic indicators due today.

Houston (ex-wharf indications 29-4)
380cst $190
180cst $309
MGO $417

New Orleans (ex-wharf indications 29-4)
380cst $208
180cst $250
MGO $413

Singapore (delivered indications 28-4)

Brent is gaining momentum +$0.38. Singapore paper is reflecting the same with +$1.75 for 180cst with +$3.00 for 380cst for May, and for June 180cst +$1.65 and 380cst with +$3.05 with MGO contracts May with +$0.52 and in June with +$0.46. The cargo market is following now with 180cst +$12.83, 380cst with +$11.76 and MGO with +$2.03.

380cst $212
180cst $218
MGO $396

Fujairah (delivered indications 28-4)

380cst $217
180cst $221
MGO $444

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $213
MGO 0.1%S: $403