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Oil prices pushed higher in European trade on Monday, rebounding from the prior session's losses, with Brent futures reclaiming the key $50-level as market players eyed supply disruptions in Nigeria.

Oil futures struggled to find a direction Friday morning after the bullish data released by the DOE offset the OPEC's bearish decision not to cap output on Thursday. Whilst investors were waiting for the release of the official labour market statistics out of the USA to provide some hints on the economy and US oil demand, oil futures remained range bound between the first support and the first resistance. In the early afternoon, the US jobs report for May fell far short of expectations, making oil futures more volatile immediately after the release of the data. The weak figures weighed on oil futures whereas the US currency slumped (making oil, which is priced in dollars, less expensive for holders of other currencies). Oil futures thus swung around their first support before the bearish cues finally prevailed. After our office hours, the Baker Hughes rig count showed an increase in the number of active US oil rigs, pushing oil futures further down. However, new attacks against pipelines in Nigeria prevented a sharper price drop. That is why oil futures renewedly failed to sustainably break below the 21-period moving average on Friday.

ICE Gasoil contract for June delivery settled at 443.00 USD on Friday, this was 6.75 USD below Thursday's settlement. With some 35,300 deals, the traded volume (front month) was below average.

The technical indicators aren't providing any fresh cues this morning. Whilst the RSI is moving in neutral territory, the Stochastic indicator is hovering near 50%, failing to give off any reliable signals. The 7- and the 21-period moving averages thus remain important resistances and supports. WTI is still trading between these lines. However, the moving averages are converging more and more. If oil futures break above or below the trading range set by the 7- and 21-period moving averages, this might technical cues for the development of oil futures in the short-term. Up to now, we assess the technical constellation as neutral as long as there aren't any fresh signals.

U.S.

Nymex on Average: After Friday's downward move, oil futures regained some ground in East Asia and in NYMEX electronic trading this morning kicking off this week with small gains. The traded volume at NYMEX is about on average this morning. Investors are waiting for the European financial and forex markets to open and for the release of today's economic indicators.

Forecast: Crude oil -2.6; Distillates -0.6; Gasoline -0.6 million barrels vs previous week.
DOE: Crude oil -1.4; Distillates -1.3; Gasoline -1.5 million barrels vs previous week.
API: Crude oil +2.4; Distillates -1.2; Gasoline -1.5 million barrels vs previous week.

Houston (ex-wharf indications 6-6)
380cst $224
180cst $326
MGO $475

New Orleans (ex-wharf indications 6-6)
380cst $231
180cst $273
MGO $446

Singapore (delivered indications 6-6)

380cst $233
180cst $238
MGO $439

Fujairah (delivered indications 6-6)

380cst $243
180cst $248
MGO $499

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $233
MGO 0.1%S: $442