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Having consolidated during electronic trading, oil futures have gained ground during the first part of the European session that lacked new fundamental impulsions. IEA director Maria van der Hoeven said this morning that the market was sufficiently supplied and the agency did not consider releasing strategic reserves, member states themselves were authorised, however, to raise their capacities if needed. Technically triggered buying orders concerning the euro has pushed the common currency up to its resistance at 1.3290 dollar versus the greenback this morning. At this level gains have been capped. The softer dollar, making oil futures cheaper for investors outside the USA, prompted market participants to shift their focus on commodities again.

Given the bearish selling signals from the technical stance and the worse than expected Chinese PMI, published by the HSBC, oil futures already traded softer at ICE and NYMEX on Thursday morning. After the European PMIs and new industrial orders also came out disappointing, the euro breached several supports which prompted investors to take some profit. As long as the WTI crude's support at 105.70 dollars proved strong, losses were limited, particularly as weekly US unemployment data were better than anticipated. Only after the opening of NYMEX floor trade could the WTI crude breach this support, reacting on the euro's losses resp. the dollar gains. Some market players also speculated that Barack Obama would give some cues as to a prompt release of strategic reserves in his speech regarding energy policy. However, the President of the USA avoided this topic, and so quotations slightly recovered during late trade, along with the euro.

ICE Gasoil contract for April delivery settled at at 1,013.75 dollars on Thursday. This was -13.00 dollars below Wednesday's settlement. With some 65,100 contracts the traded volume was slightly above average.

The stochastic indicator is still bearish at ICE and NYMEX this morning. As oil futures saw a sharp correction down and breached several supports yesterday, they have already consumed most of the downward potential, according to technical analysts. Larger selling orders would only likely if oil prices fell below yesterday's lows. Given the discussions about the release of strategic reserves and the scant reserve capacities, and with the Iran conflict still going on, analysts expect quotations to consolidate above yesterday's lows. Should the dollar develop accordingly, there might also be some profit taking.

U.S.

Nymex acces gaining. Oil futures traded hardly changed in Asian trading hours and on Globex electronic trading platform this morning. The traded volume is slightly below average. Market players now eye the development at European stock exchanges, impulsions from forex markets and today's economic indicators.

Houston (ex-wharf indications 22-3)

380cst $727
180cst $762
MGO $1063

Very tight avails for 180 cst

New Orleans (ex-wharf indications 22-3)

380cst $729
180cst $764
MGO $1066

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

Crude is losing with WTI -$0.16 Singapore paper is turning sligthly bullish with +$0.95 for 180cst and +$0.25 for 380cst for Apr, and for May 180 cst +$0.95 and 380cst +$0.20 with MGO contracts Apr -$0.10 and May -$0.18. The cargo market is bearish, but looking for direction with 180cst -$4.34, 380cst -$3.71 and MGO -$1.21.

The Singapore heavy residual inventory saw a slight build of +0.14 mbbl to 22.06 mbbl; a new recent high since May last year. The delivered bunker premiums were around $2.5- 3.0 above cargo prices. Bunker fuel swaps lost approx. $8/mt along the curve in Rotterdam and a little less in Singapore causing no changes in the forward curve structure. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $731
180 cst $741
MGO $1010

Fujairah (delivered indications 23-3)

380cst $737
180cst $759
MGO $1049

ARA (Amsterdam - Rotterdam - Antwerp)

Yesterday the ARA markets were easing still, with weak demand. Slightly more lsfo is becoming available, and the tightness should be less pressing at the end of this week.

Rotterdam

Indications for delivered bunkers:

380cst : $ 702
(1.0 %) :$ 758
180cst: $ 754
(1.0 %):$ 780
MGO 0.1%S: $1015