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As expected, oil futures have retreated during morning trade as disappointing Chinese and Italian economic data weighed on the complex. After yesterday's rally investors have reduced some of their riskier assets and taken some profit ahead of the weekend. The stronger dollar has reinforced this development. The worse than expected Chinese GDP and Italy's sinking industrial production have weighed on oil prices. Increasing bond yields have put the euro zone's indebted countries into focus again in the past few days.

Oil futures traded slightly higher Thursday morning but saw a downward correction in the early afternoon. After they had bounced off their resistance lines and after disappointing weekly US employment data and bearish monthly energy reports from the IEA and the OPEC, there was a modest counter-reaction. In all, quotations remained in a relatively tight range, however. Trade became more dynamic only after the opening of US stock exchanges. The most important indices promptly marked gains, as investors’ sentiment regarding the US' economic growth was rather positive given that the Fed is likely to continue supporting the US economy on the long run through low interest rates. Oil futures kept track of equities and rallied in late afternoon trade breaching some resistance lines which triggered further technical buying. The weaker dollar likewise supported oil prices. Furthermore, market players presumed that the reading of China's economic growth in the first quarter might come out better than forecast. Economists expected a growth of some 8.3%, whereas some market players even expected a reading of up to +9%. As the release of the data this morning showed that the Chinese GDP had only increased by +8.1%, however, investors took some profit during early trading hours.

ICE Gasoil contract for April delivery settled at 1,004.25 dollars on Thursday. This was +6.50 dollars above Wednesday's settlement. With some 80,400 contracts the traded volume was slightly above average.

OPEC: According to the IEA's report, Iran's crude output has already dropped by 10% due to the implemented sanctions. The OPEC's over-production is more than enough, however, to balance these cuts. Oil supply is to have outweighed demand by more than 1 million barrels per day, so global reserves have increased by 1.2 mbpd. The report also indicates sharply declining reserve capacities, however. They are on the lowest level since 2008. In all, the report was in line with investors' expectations.

The stochastic indicator is still bullish at NYMEX and ICE charts this morning. However, technical analysts assume that the indicator is slightly distorted given the upward movements in the past two days. These movements have mainly been triggered by macro-economic factors, although the fundamental market situation does not indicate price increases. Thus, analysts presume that the impact and the impulsions of the technical situation will only be marked by supports and resistances and that the fundamental factors (as China's GDP, Iran and the monthly reports of EIA, IEA and the OPEC) currently outweigh the technical indicators.

U.S.

Nymex acces gaining. Oil futures have retreated in Asian trading and on Globex electronic trading platform this morning. After yesterday's rally, investors have taken some profit, as China's GDP came out lower than expected and monthly reports published by the EIA, the IEA and the OPEC this week were also bearish. The traded volume has been slightly above average. Market participants look ahead to stock and forex markets and European resp. US economic indicators.

Houston (ex-wharf indications 13-4)

380cst $717
180cst $753
MGO $1030

Very tight avails for 180 cst

New Orleans (ex-wharf indications 13-4)

380cst $710
180cst $746
MGO $1057

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

Crude is turning slightly bearish with WTI -$0.27 Singapore paper is back up with +$3.80 for 180cst and +$3.35 for 380cst for Apr, and for May 180 cst +$4.00 and 380cst +$3.75 with MGO contracts Apr +$0.56 and May +$0.58. The cargo market is mirroring paper with 180cst +$5.38, 380cst +$6.80 and MGO +$1.10.

The Singapore heavy residual inventory reported a draw of -1.41 mbbl to 20.68 mbbl. The delivered bunker premiums eased down to around $5.00 above cargo prices on slower demand as a result of higher outright prices. Bunker fuel oil swaps posted gains up to €4.25/mt along the forward curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $713
180 cst $728
MGO $990

Fujairah (delivered indications 13-4)

380cst $725
180cst $745
MGO $1055

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets ease somewhat, but loading congestion remains an issue. Two fixtures have been reported, which will eat into the avails of hsfo. with loading congestion lurking. The Antwerp avails are still very tight. A contango structure is seen for April-May in Rotterdam, suggesting increasing prices.

Rotterdam

Indications for delivered bunkers:

380cst : $ 698
(1.0 %) :$ 765
180cst: $ 725
(1.0 %):$ 770
MGO 0.1%S: $999