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This morning Oil prices are down on Weak Chinese economic data and bearish IEA outlook on oil demand. The latest data regarding Chinese trade balance have stoked concern that the Chinese economy might keep losing force and so equities have retreated. In the wake of equities, the euro likewise declined breaching its first support. The support at 1.2265 dollar proved strong, however, so the euro has slightly recovered.

ICE and NYMEX have shown a steady tendency Thursday morning, pushed higher by the still bullish fundamental situation. Chinese economic data have provided some additional momentum in early morning trade, even though construction spending, retail sales and industrial production came out weaker than expected. Given these figures the Peoples Bank of China (PBOC) is even more likely to take expansive measures, the more so as inflational pressure (consumer price index and producer price index) has decreased compared to the previous month providing some leeway for such measures. Later Thursday morning, the ECB's monthly report weighed on sentiment, as the report showed a more pessimistic tone as to economic recovery in the euro zone. Economic growth is now estimated at -0.3% in 2012. The euro, even though it continued declining in the course of the day - breaching several supports - , oil futures at ICE and NYMEX have consolidated near the top of their technical range after US economic data were positive. There have still not been any selling signals and so oil prices have renewedly tested their resistance lines at 112.85 dollar (Brent), 94.20 dollar (WTI) and 957.75 dollar (Gasoil). While the WTI has not been able to exceed its resistance, quotations at ICE have breached their resistance lines triggering technical buying orders. They have continued rising until late in the evening. According to analysts fears of supply in Europe have caused this divergence in late trade that made the spread between the Brent and the WTI rise to some 19.80 dollars - the highest level since nearly 4 months.

ICE Gasoil contract for August delivery settled at 959.50 dollars on Thursday. This was 4.00 dollars above Wednesday's settlement. With some 22,100 contracts the traded volume was below average. The stochastic indicator has given a selling signal at the WTI charts, whereas the lines of the indicator only touch at the ICE charts and can thus still be interpreted as neutral. Technical analysts consider the situation as significantly overbought and so there might be some profit taking. There are still only single selling signals. Yesterday, the stochastic indicator at the Brent charts was the only one hinting at a downward correction, today the stochastic is only doing so for the WTI. If the indicators at ICE charts should follow, there might be a sharp correction, however. Along with the overbought situation, the weekend, the 7 day price increase regarding the Brent and the steady dollar might also prompt investors to take some profit, analysts say. However, the technical constellation will only have a considerably bearish impact on prices, if there is no surprising fundamental news and the indicators at ICE also give some selling signals.

U.S.

Nymex access slowing: Oil futures traded slightly lower in East-Asia and on Globex electronic trading platform this morning pulling back from yesterday's highs. The traded volume is slightly below average. Market participants now look ahead to the performance of stock and forex markets and today's economic indicators.

Houston (ex-wharf indications 9-8)

380cst $638
180cst $678
MGO $995

New Orleans (ex-wharf indications 9-8)

380cst $642
180cst $672
MGO $1005

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

Crude is slowing further with WTI +$0.54. Singapore paper is mirroring crude with +$4.05 for 180cst and +$4.05 for 380cst for Aug, and for Sep 180 cst +$4.75 and 380cst +$5.45 with MGO contracts Aug +$2.18 and Sep +$2.20. The cargo market isin line wiht crude and paper, gaining with 180cst +$3.97, 380cst +$4.15 and MGO +$1.28.

The Singapore fuel oil markets were closed Yesterday, due to a public holiday. This morning the markets are trading up.

High premiums for prompt deliveries.

380 cst $650
180 cst $665
MGO $940

Fujairah (delivered indications 10-8)

380cst $665
180cst $689
MGO $1040

ARA (Amsterdam - Rotterdam - Antwerp)

After last week's bullish end, the week continued with the bullishness. Continuing loading delays up to three days are reported. With short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 642
(1.0 %) :$ 695
180cst: $ 682
(1.0 %):$ 746
MGO 0.1%S: $945