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Following a calm session on Monday, oil markets in London and New York surged Tuesday. Technical buying signals for ICE futures had already favoured during morning trade that Brent and G.Oil tested their key resistances at 102.80 USD and at 860.0 USD, respectively. After these could be breached, oil prices soared. In the course of the day, technical buying orders that were automatically triggered pushed oil prices steadily upwards and eventually, the Stochastic oscillator also gave off a buying signal for WTI. News on Sudan’s threats to block South Sudan oil exports again and on Nigerian exports being expected to fall to a 4-year low in June offered enough incentive for market players to engage in long positions. Besides, expectations of lower Ekofisk production in the North Sea in June as well as the EU’s lift of its embargo on Syrian arms sales added to the bullish potential yesterday. Given the positive economic indicators released in the USA in the afternoon, oil futures maintained their upward tendency into the evening and consequently settled at their day’s highs.

ICE Gasoil contract for June delivery settled at 875.75 USD on Tuesday. This was ±0,00 USD compared to Monday's settlement. With some 43,500 deals the traded volume was slightly below average.

After first buying signals for ICE futures, the Stochastic also gave off a bullish cue for WTI in the course of the day Tuesday. Together with the breach of key resistances at ICE, oil markets have seen a strong technical advance yesterday. The indicator remains bullish this morning even if the buying pressure has slightly decreased after yesterday’s price rally. Accordingly, some traders might tend to take profits from speculative long positions, the more so as the strong dollar would currently help in this regard. However, there are no selling signals so far and thus we consider the technical constellation neutral to bullish this morning, given past buying signals at ICE and NYMEX.

U.S.

Nymex bearish: Although the dollar has been favouring some profit-taking from long positions, gains have remained limited, not least because Asian stocks (Nikkei 225) are again edging higher today. The traded volume at NYMEX is about average for this time of day. Market players are now eying the performance of European markets and are waiting for today’s economic data. Due to the holiday in the USA on Monday, U.S. oil inventories will be released a day later than usual. Thus, the API data are to be released tonight at 10.30 p.m. and those of the DoE tomorrow at 4.30 p.m.

Houston (ex-wharf indications 28-05 )
380cst $589
180cst $668
MGO $955

New Orleans (ex-wharf indications 28-05)
380cst $613
180cst $660
MGO $965

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

Crude is losing with -$0.20. The paper market is turning bullish with June 180cst +$3.00 and for 380cst +$3.50, and July contracts with 180cst +$3.15, 380st +$3.00. The cargo market is back up as well, gaining, with 180cst +$6.62, and 380cst +$5.80 and MGO -$1.666.

The Singapore fuel oil markets rose up more than +$5.0 during the Platts window yesterday. Supplies were ample as strong incoming cargoes flooded the market while demand was softer. The delivered bunker premiums were around +$7.25 above cargoes prices as crude strengthen after the window. This morning both markets are trading slightly down.

380cst $606
180cst $616
MGO $875

Fujairah (delivered indications 29-05)

380cst $620
180cst $687
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $590
(1.0 %) :$ 615
180cst: $ 620
(1.0 %):$ 646
MGO 0.1%S: $ 865