---

After having edged lower in early European trading oil futures have seen a sharp rise in the course of the morning breaching several resistances. On the one hand, they were buoyed by better than expected economic indicators out of the euro zone, on the other hand there were some bullish clues from news regarding reduced supply from the Buzzard oil field in the North Sea. According to reports, the crude oil supply from one of the most important oil fields in the North Sea is still affected by technical problems at the platform. Along with the better than expected Eurozone purchasing manager index and the lower than forecast unemployment rate of the European currency bloc, this made oil futures breach their first resistance lines triggering further technical buying orders. Apart from this, the continuing geopolitical tensions have also supported oil markets. In Syria, the Assad regime has renewedly tried to regain some ground against the rebels in Homs and the situation in Iraq is still far from improving. Moreover, oil markets are rather volatile today as on Thursday US-traders will celebrate Independence Day. However, upward potential has been limited, so far, near the Gasoil's resistance at 892.00 dollars and near the Brent's 103.00 dollars resistance.

Oil prices at ICE and NYMEX initially showed a steadier tendency on Friday morning buoyed by a marginally stronger euro and by some Fed members' comments leading to expect that the Fed might take a little longer to realise its exit strategy than Ben Bernanke had implied after the FOMC's last meeting. Accordingly, oil futures tested their resistances. However, there was but little upward potential left after four straight days of gains - the more so, as there were no decisive fundamental news. In the afternoon, the dollar marked some gains prompting investors at oil markets to take some profits. In the evening, market participants cut some of the long positions they had accumulated in the course of the week and so oil futures eventually slid near their lows settling near these levels as well.

ICE Gasoil contract for July delivery settled at 883,25 USD on Friday. This was 0,50 USD above Thursday's settlement. With some 47.200 deals the traded volume was slightly below average.

The buying clues coming from the stochastic indicator should be spent by now - at least this is what is signalled by the converging lines of the indicator. Therefore, the stochastic indicator is neutral both at ICE and at NYMEX charts. The RSI does not give any clues either. That is why we assess the technical constellation as neutral this morning.

U.S.

Nymex bullish: Oil futures have initially kept track of Friday's losses this morning as the purchasing manager indices out of China have been considered as rather negative. The traded volume at NYMEX is far above average for this time of day. Market players are now eying the performance of European markets, new cues from forex trading and for some economic data.

Houston (ex-wharf indications 28-06 )
380cst $572
180cst $622
MGO $966

New Orleans (ex-wharf indications 28-06)
380cst $577
180cst $615
MGO $968

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

Crude is slipping on profit taking with -$1.00. The paper market is turning as well with Jul 180cst +$2.25 and for 380cst -$4.25, and Aug contracts with 180cst -$1.25, 380st -$2.50. The cargo market is not yet responding, gaining with 180cst +$2.50, and 380cst +$5.06 and MGO +$1.12.

The Singapore fuel oil markets rose $5.0-2.5/mt during the Asian Platts window last Friday. The Singapore heavy residual inventory reported a draw of -2.96 mbbl to 21.41 mbbl, down by -12%. The fall was a result of heavy trading volume over the month of June when players were on a strong buying spree especially on the 180cst physical cargo. The delivered bunker premiums were seen app.$5.50 above cargoes prices. This morning markets are trading slightly lower.

380cst $584
180cst $600
MGO $880

Fujairah (delivered indications 1-07)

380cst $592
180cst $677
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $584
(1.0 %) :$ 617
180cst: $614
(1.0 %):$ 645
MGO 0.1%S: $ 879