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After having retreated and breached first supports earlier this morning, triggered by bearish German and US Economic data, oil prices have pared some losses around midday. Since there are no fundamental cues, the strong supports at 808.00 dollars for the G.Oil resp. at 77.65 dollars for the WTI and some short covering ahead of the weekend are seen as the main reasons for the rebound. Moreover, a technical upward correction was to be expected after the sharp decline in the past few days. However, should the supports be tested again during the day, further losses can be expected next week.

Oil prices traded lower Thursday morning, already breaching first supports at the beginning of the European session as Wednesday's oil inventories data had come out clearly bearish and the Fed's measures of monetary policy fell short of expectations. The WTI crude's psychological support at 80 dollars proved strong initially which made oil futures slightly recover despite disappointing economic data from the euro zone and China. In the course of the afternoon, the bearish factors like the technical constellation and weak economic data prevailed, however, causing a sustainable downward reaction in late trade. Quotations fell through supports that were stable up to then, like the WTI's psychological threshold at 80 dollars. This triggered further technical selling orders pushing oil futures down to fresh long-time lows in late evening.

ICE Gasoil contract for July delivery settled at 822.00 dollars on Thursday. This was 19.25 dollars below Wednesday's settlement. With some 82,700 contracts the traded volume was above average.

The stochastic indicator already gave a selling signal at ICE and NYMEX charts yesterday but the indicator can still be interpreted slightly bearish this morning. As the WTI has dropped below 80 dollars and the Brent below 90 dollars, there is fresh downward potential. After the decline in the past few days, the short-term downward potential should decrease. Ahead of the weekend, investors may reduce their short positions and thus send quotations temporarily higher, even though the technical situation is still rather bearish.

U.S.

Nymex access losing: Oil futures have briefly recovered in Asian trading and on Globex electronic trading platform this morning, supported by steady Asian equities and some short-covering. Meanwhile oil futures have erased these gains, however. The traded volume was well above average. Traders will eye the performance of stock and forex markets and the German ifo business climate indicator today.

Houston (ex-wharf indications 21-6)

380cst $558
180cst $603
MGO $885

New Orleans (ex-wharf indications 21-6)

380cst $567
180cst $598
MGO $895

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

Crude is bearish still, losing with WTI -$1.96. Singapore paper is losing still with -$12.50 for 180cst and -$12.50 for 380cst for Jul, and for Aug 180 cst -$12.45 and 380cst -$12.45 with MGO contracts Jul -$1.78 and Aug -$1.80. The cargo market is fully responding to the bearishness with 180cst -$14.00, 380cst -$14.94 and MGO -$3.23.
v The Singapore fuel oil markets fell more than $14.0 during the morning window yesterday tracking crude movement. The Asian crack narrowed significantly held by strong buying interests. The bunker premiums remained around $8.5 above cargo prices. Bunker fuel oil swaps lost nearly $21/mt at the front of the forward curve. Backend was again slightly stronger, posting app.$16/mt losses. This morning markets are still trading down.

High premiums for prompt deliveries.

380 cst $560
180 cst $570
MGO $790

ARA (Amsterdam - Rotterdam - Antwerp)

The avail constraints continue to underpin both hsfo and lsfo levels, despite falling crude prices. Not much relief is expected within the next couple of weeks, with continuing loading delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 540
(1.0 %) :$ 573
180cst: $ 565
(1.0 %):$ 591
MGO 0.1%S: $808