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Oil rallied this morning as Canada's most destructive wildfire in recent memory knocked out over a million barrels in daily production capacity, but caution among investors prevented a return to late April's 2016 price highs.

Oil futures edged lower Friday morning, testing the supports near the 21-period moving averages. The futures traded on the trading platform ICE temporarily broke below these supports but at the WTI chart the 21-period moving average remained strong. Oil prices were slightly weighed down by news on Iran's high oil production and exports. The wildfire in Canada bolstered oil futures, though. With WTI failing to break below its support near the 21-period moving average (43.65 USD) and the production losses in Canada still having a bullish impact, oil futures steadied in the course of the afternoon. The technical constellation also turned from neutral to bullish Friday afternoon as the lines of the Stochastic indicator crossed. This buying signal favoured more technical buying. Although oil futures lost some ground after the settlement of the ICE Gasoil contract, they eventually ended the week clearly in the black.

ICE Gasoil contract for May delivery settled at 400.00 USD on Friday, this was 1.25 USD above Thursday's settlement. With some 31,100 deals, the traded volume (front month) was below average.

WTI on Friday failed to break below its key support near the 21-period moving average. This favoured an upward correction. When the lines of the Stochastic indicator crossed in the afternoon, the indicator eventually gave off a buying signal. It is still bullish this morning. If the Stochastic indicator rises above 50% in the course of the day, the bullish impact of the indicator would further increase. We thus assess the technical constellation as bullish this morning. Oil futures might test their potential up to the upper Bollinger Band as they have already surpassed the 7-period moving averages.

U.S.

Nymex above average: Oil futures kept track of their decline in East Asia and in Globex electronic trade this morning, dropping below Thursday's lows. The key-supports are still intact, though. The traded volume at NYMEX is far above average this morning. Market players are waiting for the European financial and forex markets to open as well as for the release of some economic indicators due today.

Houston (ex-wharf indications 9-5)
380cst $195
180cst $297
MGO $422

New Orleans (ex-wharf indications 9-5)
380cst $214
180cst $273
MGO $418

Singapore (delivered indications 9-5)

Brent is up +$1.42. Singapore paper is reflecting the same with +$6.80 for 180cst with +$6.75 for 380cst for May, and for June 180cst +$7.55 and 380cst with +$7.30 with MGO contracts May with +$1.15 and in June with +$1.18. The cargo market is following now with 180cst -$7.29, 380cst with -$6.80 and MGO with -$1.04.

380cst $212
180cst $218
MGO $400

Fujairah (delivered indications 9-5)

380cst $222
180cst $226
MGO $449

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $208
MGO 0.1%S: $388