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Crude oil futures edged lower this morning, as lingering concerns over a global supply glut weighed.

Market fundamentals and the technical constellation were neutral for oil futures at ICE and NYMEX on Friday morning. Even though there were signs that the stochastic indicator might give selling signals, these signals hadn't been generated at that point in time yet. The bearish market sentiment prevailed as Saudi Arabia had announced on Thursday that it could step up oil production in case of rising demand. Oil prices had already dropped below Thursday's lows on Friday morning but losses were limited by the strong supports at 64.10 USD Brent and 585.00 USD Gasoil. Even so, futures had thus breached the supports provided by the moving averages (MA7). In the afternoon, trading remained rather lacklustre and so oil futures consolidated above these levels. The stochastic indicator generated a selling signal at the Brent chart in the course of the day, adding to the technical selling pressure. The supports at 585.00 USD Gasoil and 64.10 USD Brent that had been strong until then were finally breached. This triggered further technical stop-loss selling orders. Whilst WTI retreated comparatively slowly, oil futures at ICE settled with considerable losses against the backdrop of a more and more bearish technical constellation.

ICE Gasoil contract for July delivery settled at 585.25 USD on Friday, this is -4.00 USD below Thursday's settlement. With some 62,400 deals the traded volume (front month) was below average.

The lines of the stochastic indicator have crossed at ICE and NYMEX charts, generating selling signals. Gasoil and Brent had already dropped below the MA 7 and 21 on Friday, generating more downward potential. WTI hasn't breached the MA 21 up to now. However, the moving averages have renwedly crossed at the WTI chart, providing a buying signal. This morning, oil futures kept track of the decline they had seen last week. They have already dropped below Friday's lows in the early morning. Even though this might have spent some of the bearish potential, we assess the technical constellation as bearish against the backdrop of the selling signals provided by the stochastic indicator. The buying signal of the moving averages at the WTI chart is preventing too hefty losses, though. It might even favor som short covering. The MA21 might become a key-support for WTI.

U.S.

Nymex above average: Oil futures have already dropped below Friday's lows in the early morning due to the bearish technical constellation. However, the have just pulled back from their lows, trading nearly flat compared to Friday's settlement. The traded volume at NYMEX is slightly above average at this time of the day. Market participants are waiting for the European financial and the forex markets to open and for economic indicators that are on the agenda today.

Houston (ex-wharf indications 15-6)
380cst $346
180cst $468
MGO $633

New Orleans (ex-wharf indications 15-6)
380cst $352
180cst $418
MGO $620

Singapore (delivered indications 15-6)

WTI is losing with -$1.18. Singapore paper is down with -$11.60 for 180cst with -$10.75 for 380cst for Jun, and for Jul 180 cst -$8.90 and 380cst with -$8.50 with MGO contracts Jun gaining with -$1.52 and in Jul with -$1.49. The cargo market is bearish with 180cst +$2.94, 380cst with +$0.75 and MGO down with -$0.45.

380cst $358
180cst $371
MGO $563

Fujairah (delivered indications 15-6)

380cst $349
180cst $384
MGO $739

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $331
MGO 0.1%S: $558