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After resistance lines proved strong, oil prices drop from their intraday highs as there was no news in the markets that pushed them higher in the first place. Little volume in a quiet trade will keep prices rangebound unless some very positive or negative economic indicators give some momentum in the afternoon.

Oil futures started the day lower in London in New York in a technical reaction to Wednesday's late gains. But at noon prices rocketed, breaching several resistance lines in the wake of a strong rise in equities and a rebound in the euro after ECB president Mario Draghi pledged to do whatever is necessary to preserve the euro without detailing what kind of measures he was talking about. Market players reacted quickly and invested in more risky assets such as the euro. The mixed US indicators were not apt to support the dollar vs the euro as investors also bet on fresh monetary easing measures to be announced by the FED at its meeting next Tuesday and Wednesday. Such measures would dilute the value of the dollar and support the euro and the oil. As there were no more relevant news in the markets investors took some profit during the session in New York and in after-hour trading oil prices consolidated on their high level.

ICE Gasoil contract for August delivery settled at 905.50 dollars on Thursday. This was 18.75 dollars above Wednesday's settlement. With some 43,700 contracts the traded volume was below average.

The Stochastic indicator gave a buying signal at ICE and NYMEX charts on Thursday while the RSI is still neutral. Yesterday's breach of various resistance lines opens up more upside to prices. Still, technical analysts see the fundamentals as the dominant factors to influence oil prices today, despite the rather bullish technical constellation. Without more news prices are seen consolidating ahead of the weekend but with a bullish tendency.

U.S.

Nymex access gaining: Oil futures edged higher in Asian trading and on Globex electronic trading platform this morning, breaching first resistance lines on a still bullish market sentiment. The traded volume is little below average. Market participants eye equities and forex markets today as well as some economic indicators in the afternoon.

Houston (ex-wharf indications 26-7)

380cst $613
180cst $641
MGO $950

New Orleans (ex-wharf indications 26-7)

380cst $610
180cst $650
MGO $969

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

Crude is gaining bullish momentum with WTI +$1.13. Singapore paper is gaining as well with +$8.75 for 180cst and +$8.50 for 380cst for Aug, and for Sep 180 cst +$8.75 and 380cst +$8.55 with MGO contracts Aug +$1.90 and Sep +$1.90. The cargo market is starting to react to the latest turn with 180cst +$5.98, 380cst +$5.62 and MGO +$0.42.

The Singapore fuel oil market prices rose more than $5.5 during the morning window yesterday tracking crude movements. The latest Singapore heavy residual inventory reported a slight build of 0.23 mbbl to 17.61 mbbl. The delivered bunker premiums were around $7.0 above cargo prices yesterday. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $630
180 cst $640
MGO $900

ARA (Amsterdam - Rotterdam - Antwerp)

In the ARA, all both hsfo and lsfo levels surged, tracking crudes and stock markets. Not much demand seen, with loading delays and short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 610
(1.0 %) :$ 652
180cst: $ 635
(1.0 %):$ 695
MGO 0.1%S: $900