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Brent crude for July delivery on the ICE futures exchange traded lower, down 7 cents at $102.37 a barrel. Light, sweet crude for July delivery traded lower by 38 cents, or 0.4%, at $93.87 a barrel on the New York Mercantile Exchange. Volumes in London were starting to thin ahead of long holiday weekends in the U.K. and in the U.S. Torbjorn Kjus, analyst at DnB NOR, said Brent prices are seeing hard resistance in the $102-$103 a barrel range. Still, any flare-up in geopolitical tensions in Iraq, Syria and Libya could propel markets through this barrier.

Oil futures continued to drop for the third straight day Thursday and breached several supports in the course of the day. The decline in prices has been caused by the slightly bearish technical constellation and the fundamental situation which had turn increasingly bearish over the past day given Bernanke’s comments, the FOMC minutes, U.S. oil inventories and a contracting Chinese manufacturing sector. But along with the better-than-expected data out of the EU, downward potential was limited. In the afternoon, a series of positive U.S. indicators weighed on the oil market. Since the Fed had announced that it would start to reduce expansive measures if the economy showed sustainable signs of growth, led to a rather contradictory reaction to actual encouraging figures regarding economic recovery. On the one hand, the signal positive demand development, and on the other hand, they could be the starting point for less liquidity in the market. In the course of the evening, market plays increasingly focused on short-coverings in order to consolidate their risky positions ahead of the long weekend in the USA (Memorial Day). As a result, oil futures could almost completely pare their losses and WTI and Brent closed at new highs.

ICE Gasoil contract for June delivery settled at 849.50 USD on Thursday. This was 17.25 USD below Wednesday's settlement. With some 70,400 deals the traded volume was clearly above average.

The Stochastic gradually loses its bearish effect as its both lines are converging. As certain supports have been breached, new downward potential has arisen but more short coverings might limit downside before the weekend, the more so as the fundamental situation carries more weight at the moment given the effect of momentary policy on markets.

U.S.

Nymex bearish: After first short coverings last night, oil futures are returning from their high level reached during the night. The bearish market sentiment as well as declining Asian stock markets weigh on oil price. The traded volume at NYMEX is about average for this time of day. Market players are now closely watching the performance of European markets, new cues from forex trading and some economic data on the agenda today.

Houston (ex-wharf indications 23-05 )
380cst $578
180cst $643
MGO $960

New Orleans (ex-wharf indications 23-05)
380cst $585
180cst $648
MGO $965

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

The Singapore fuel oil markets extended losses by nearly $6.0 yesterday. Singapore market is closed due to Vesak Day holiday and will reopen on Monday. This morning the markets are trading higher.

No indications due to public holiday.

Fujairah (delivered indications 24-05)

380cst $605
180cst $675
MGO $1010

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $577
(1.0 %) :$ 598
180cst: $ 607
(1.0 %):$ 636
MGO 0.1%S: $ 848