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U.S. crude futures rose Monday as encouraging manufacturing data out of Europe helped raise hopes of higher energy demand. Light, sweet crude for July delivery recently traded 49 cents, or 0.5%, higher at $92.46 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 97 cents higher at $101.36 a barrel. Oil prices rebounded from early losses after the euro zone's manufacturing purchasing managers' index rose to 48.3 in May from April's 46.7. While any reading under 50 indicates contraction, the report came in above forecasts of 47.8.

Market players had already tended to take some profits early Friday morning after Thursday’s late surge, which had been driven by the perceived bullish data on U.S. gasoline inventories, was considered rather exaggerated. Pressured by the strong dollar, soft European stock markets and a slightly bearish technical constellation, market players liquidated their long positions ahead of the OPEC meeting. In the early afternoon, OPEC’s decision to maintain its output ceiling at 30 million barrel/day accelerated the downturn at the oil market although this step had been widely expected. Consequently, oil futures breached more supports and weighed down by technical selling orders ahead of the weekend, oil prices closed at fresh 4-week lows.

ICE Gasoil contract for June delivery settled at 856.00 USD on Friday. This was 14.00 USD below Thursday's settlement. With some 48,000 deals the traded volume was slightly below average. The Stochastic indicator still is slightly bearish this morning after its both lines crossed last week and have not been converging yet. However, given Friday’s sharp drop, the bearish potential might be largely used up by now. The Stochastic oscillator as well as the RSI are indicating an oversold market situation, which favours a considerable advance if the respective bullish signals were triggered. These may arise from the RSI as the indicator is already touching the 30%-line. If this mark was breached in the course of the day, a potential technical buying signal could provide some bullish momentum. But as long as the RSI is not giving off any cues, the technical constellation may be considered rather neutral to slightly bearish.

U.S.

Nymex bullish: Oil markets saw a slight counter-reaction this morning after declining late on Friday. As technical or fundamental signals were lacking, the bullish tendency may have derived from short coverings. The traded volume at NYMEX is far above average for this time of day. Market players now look ahead to the performance of European markets, to new signals from forex trading and to some economic data to be released today.

Houston (ex-wharf indications 31-05 )
380cst $575
180cst $654
MGO $950

New Orleans (ex-wharf indications 31-05)
380cst $598
180cst $635
MGO $951

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

Crude is bearish with -$1.12. The paper market is dropping with June 180cst +$0.35 and for 380cst -$3.50, and July contracts with 180cst -$1.65, 380st -$1.65. The cargo market is bearish with 180cst -$1.54, and 380cst -$1.12 and MGO -$1.25.

The Singapore fuel oil markets lost app.$1.25 during the Platts window last Friday. Bunker demand was said to be soft and slow while the ample supply was keeping fundamental fragile. The delivered bunker premiums maintained around $6.5 above cargoes prices. This morning the markets are trading slightly higher.

380cst $592
180cst $605
MGO $845

Fujairah (delivered indications 01-06)

380cst $605
180cst $673
MGO $990

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) :$ 604
180cst: $ 608
(1.0 %):$ 634
MGO 0.1%S: $ 838