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The price of crude oil was steady above the $95-mark Friday morning amid a generally firm US dollar.Light Sweet Crude Oil (WTI) futures for August delivery, edged up $0.35 to $95.49 a barrel. Yesterday, oil lost over 3 percent as market sentiments dampened on the U.S. Federal Reserve's stand on its monetary stimulus support for the economy which could be tapered down as early as the year end. Investors also mulled over some disappointing weaker than expected manufacturing activity out of China and initial jobless claims data from the U.S. This morning the U.S. dollar was hovering around its 2-week high versus the euro and sterling, while extending gains versus the yen and the Swiss franc.

ICE Gasoil contract for July delivery settled at 875,75 USD on Thursday. This was -22.00 USD above Wednesday's settlement. With some 69.800 deals the traded volume was about average.

Oil futures had already marked a sharp decline in Asian trading on Thursday as investors digested Ben Bernanke's comments on the Fed's futures monetary policy (Wednesday). With a reading of 48,3 points, which is significantly below the growth-marker of 50 points, the preliminary Chinese purchasing manager index released by the HSBC also weighed on prices at that point in time as it pointed to a negative development of the industry in the second largest economy in the world. In the first hours of European trading oil prices at ICE thus already fell below their first supports. The WTI initially remained relatively steady but, finally, the US-benchmark crude was also pressured by the bearish technical constellation. During NYMEX floor trade the decline in oil prices has frequently been interrupted by strong supports. Since equities marked considerable losses (with the Dow Jones marking the sharpest daily decline since the beginning of this year), reacting even more then oil markets on the Fed's announcements, and the dollar strengthened, oil futures at both ICE and NYMEX eventually settled with losses. WTI lost 2.6% in the course of the day and ICE Brent and Gasoil are likely to mark the sharpest weekly decline since the beginning of April.

After the stochastic indicator and the RSI have given selling signals the indicators are bearish at all charts this morning. The breach of the lower limits of the short-term uptrends have exposed more downside. However, most of this has already been spent after yesterday's sharp losses. Therefore, this morning, we expect a slight upward correction. Later investors will probably take some profits.

U.S.

Nymex bearish: Oil futures at ICE and NYMEX have edged higher this morning in a technical reaction on yesterday's sharp losses and bolstered by the euro regaining some ground against the dollar. The traded volume at NYMEX is far above average for this time of day. Market players are now closely watching the performance of European markets, new cues from forex trading and for some economic data to be released in the course of the day.

Houston (ex-wharf indications 20-06 )
380cst $580
180cst $621
MGO $963

New Orleans (ex-wharf indications 20-06)
380cst $583
180cst $644
MGO $963

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

The Singapore fuel oil markets fell more than -$8.0 during the Asian Platts window yesterday. The Singapore heavy residual inventory reported a massive build of +2.0 mbbl to 24.36 mbbl, a recent record high. The delivered bunker premiums were app. $6.0 above cargoes prices. This morning the markets are trading slightly higher.

380cst $594
180cst $608
MGO $880

Fujairah (delivered indications 21-06)

380cst $602
180cst $685
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $576
(1.0 %) :$ 611
180cst: $ 606
(1.0 %):$ 641
MGO 0.1%S: $ 868