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Oil prices rose to fresh seven-month highs in European trade this morning, adding to sharp overnight gains amid mounting concerns over global supply disruptions.

Oil futures consolidated on a high level on Friday, struggling to find direction. On Monday, however, prices sharply increased. Friday evening the Baker Hughes rig count had shown a renewed decline in the number of active US oil rigs. Moreover, Goldman Sachs analysts had estimated at the weekend that oil prices will hover around 50 USD in the second half of 2016 against the backdrop of the current deficit in supplies. This fostered oil prices, as did news saying that Canada's oil industry was still threatened by the wildfires. Oil futures rather soon broke above Friday's highs. Only little later, they also posted fresh 2016-highs. The fact that operations at Libya's oil export terminal el-Hariga were resumed for domestic deliveries failed to change the bullish sentiment. Oil futures at ICE and NYMEX eventually ended the day with fresh highs, with WTI advancing the most.

ICE Gasoil contract for June delivery settled at 430.25 USD on Monday, this was 11.50 USD above Friday's settlement. With some 96,200 deals, the traded volume (front month) was above average.

When oil futures broke above earlier 2016-highs, fresh upward potential was generated. However, most of this upward potential has largely been spent by now. WTI holds steady, already having another high this morning. The US crude oil contract has thus reached the upper Bollinger Band. Both the Stochastic indicator and the RSI are moving in overbought territory, favouring profit taking. However, profit taking shouldn't occur before the indicators give off selling signals, i.e. when the RSI drops back below 70% or when the lines of the Stochastic indicator cross. The technical uptrends remain intact. The fact that WTI is testing the upper Bollinger Band indicates that the upward potential is waning and that some investors might tend to take profits. In the short-term, however, an uptrend has developed between the 7-period moving average and the upper Bollinger Band. We are thus assessing the technical constellation as neutral this morning.

U.S.

Nymex above average: Oil futures remained near Monday's highs during the Asian session. WTI has already broken above Monday's high in Globex electronic trading this morning,. The traded volume at NYMEX is above average this morning. Market participants are waiting for the European financial and forex markets to open as well as for news on the recommissioning of oil installations in Canada. They are also eying to the release of some important economic indicators due today. Moreover, the API will release its data on US petroleum stockpiles tonight.

Houston (ex-wharf indications 17-5)
380cst $208
180cst $311
MGO $427

New Orleans (ex-wharf indications 17-5)
380cst $220
180cst $269
MGO $420

Singapore (delivered indications 17-5)

380cst $230
180cst $234
MGO $425

Fujairah (delivered indications 17-5)

380cst $241
180cst $245
MGO $479

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $223
MGO 0.1%S: $423