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Oil futures traded in a narrow lateral range in thin morning trade before soaring at midday, breaching serveral support lines in the process, after the euro rallied on a coordinated action from key central banks to add liquidity to the European banking system. The announcement boosted not only the 17-nation currency, but lifted equity markets and oil futures as well that settled mostly higher Thursday. Only the WTI crude contract lagged a bit behind, widening the brent-WTI spread to over 25 dollars again. Oil futures trade higher in East Asia and Globex electronic trade this morning, holding on to Thursday's gains and trading short of resistance lines. The strong euro might provide more bullish momentum. The traded volume is on average. Traders will eye foreign exchange rates today.

The Stochastic indicator at the brent and the gasoil chart is clearly bullish this morning, while the one at the WTI chart doesn't give any clear signals yet. A technical triangel has formed that will set today's trade margin. Technical analysts bet on oil prices to hit resistance lines in the course of the day while more bullish momentum is only seen if prices breach the triangle to the upside. The WTI crude is likely to consolidate within Thursday's 88,00 to 90,15 dollar range. The first support for the WTI crude is seen at 88,15 dollars, its first resistance at 89,90 dollars. The Brent's first resistance is seen at 113,20 dollars, its first support is at 111,55 dollars.

ICE Gasoil contract for October delivery settled at 952,25 dollars on Thursday. This was 30,25 dollars above Wednesday's settlement. With some 98.100 contracts the traded volume was well above average.

OPEC seaborne oil shipments are seen rising by 60.000 bpd in the four weeks ending October 1st, so Tanker Tracker Oil Movements. The increase comes as OPEC production hovers at its highest level since 2008, but economists warn that oil demand may turn out to be lower than expected due to stalling economic growth.

Worse-than-expected US economic indicators (unemployment claims rose, Empire State index lower than expected, inflation rate higher than forecast) that would usually have weighed on the oil complex, had no influence at all Thursday in face of the coordinated action of key central banks to add liquidity to the European banking system. The euro zone foreign trade showed a surplus of +4.3 billion Euros in July 2011, according to preliminary estimates, vs a surplus of +4.7 billion euros a year ago. In June 2011 the surplus stood at +0.1 billion euros, versus + 0.4 bln in June 2010. The current account for the euro zone amounts to a seasonally adjusted -12.9 billion euros in July after -7.1 billion in the previous month (revised figure). Economists expected a reading of -5.6 billion euros. The euro clung to gains this morning, boosted by coordinated action from key central banks to add liquidity to the European banking system, although the rally is unlikely to last as the Greek debt crisis remains in a critical state. The rally followed an announcement that the European Central Bank will liaise with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank to provide three-month dollar loans to banks to prevent the money market from freezing up. But investors are reluctant to make heavy bets ahead of a meeting of EU finance ministers in Poland which U.S. Treasury Secretary Timothy Geithner will also join. Discussions are expected to focus on leveraging the euro zone's bailout fund to make it more effective in fighting the debt crisis.

U.S.

Nymex Access gaining: Oil futures trade higher in East Asia and Globex electronic trade this morning, holding on to Thursday's gains and trading short of resistance lines. The strong euro might provide more bullish momentum. The traded volume is on average. Traders will eye foreign exchange rates today.

US petroleum inventories: DOE data released Wednesday confirmed the API's big draw in crude oil stocks and a heft decrease in refinery utilisation while product stocks unexpectedly rose:

Houston (ex-wharf indications 15-9)

380cst $645
180cst $689
MGO $955

Very tight avails for 180 cst

New Orleans (ex-wharf indications 15-9)

380cst $648
180cst $692
MGO $959

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is gaining with WTI now +$0.69. Singapore paper is gaining sharply on the back of the losing dollar with +$19.30 for 180cst and +$19.25 for 380cst for Sept, and for Oct 180 cst +$19.30 and 380cst +$19.25 with MGO Sept contracts at +$3.48 and for Oct at +$3.53. The cargo market is mirroring with 180cst +$19.30, 380cst +$19.25 and MGO +$3.53.

The Singapore fuel oil markets rallied more that $12.00/mt during Platts window tracking crude

High premiums for prompt deliveries.

380 cst $657
180 cst $667
MDO $930

Fujairah (delivered indications 16-9)

380cst $674
180cst $695
MGO $1078

Rotterdam

Indications for delivered bunkers:

380cst : $ 655
(1.0 %) :$ 667
180cst: $ 680
(1.0 %):$ 692
MGO 0.1%S: $ 964