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Crude oil prices eased slightly in Asia this morning on profit taking and ahead of industry data on U.S. stocks expected to show a drawdown in crude and gasoline as the summer driving season starts and a new pipeline makes shipments easier.

Futures in London and New York started with a steadier tendency on Monday morning, keeping track of the bullish market fundamentals. Renewed fighting and production losses in Libya and the still unstable situation in Ukraine pushed prices higher in the first half of the day making them breach their first resistances. In this phase, Brent found a strong resistance at 110.30 USD, indicating the technical formation of a double-top. In the course of the day, Vladimir Putin announced that the manoeuvres of the Russian army in the regions near the border to Ukraine had been concluded. The troops were ordered to return to their base. Even though this can be considered a sign of de-escalation, the troops had already been ordered to return to their base several times in the past but nothing happened. This time, the NATO couldn't confirm a withdrawel of the Russian troops either. Since there were no other news and economic indicators were also lacking on Monday, oil futures consolidated on a higher level in the early afternoon. When Brent dropped back down from its strong resistance at 110.30 USD, investors took some profits until the evening. After Brent and Gasoil had breached earlier lows, the decline in oil futures was accelerated by technical profit taking as the stochastic indicator renewedly gave a selling signal at the ICE charts. Since the WTI contract remained relatively steady, spreadbets might have played a role yesterday, too. Market players usually bet on a narrowing spread between the price of WTI and Brent by raising their short positions in Brent and their long positions in WTI. Ahead of this week's US oil inventories data, investors might have done so yesterday as well.

ICE Gasoil contract for June delivery settled at 912.25 dollars on Monday. This was -4.00 USD below Friday's settlement. With some 75,800 deals, the traded volume was clearly above average.

The stochastic indicator has turned bearish at the ICE charts again as its lines crossed at the Brent chart yesterday and drifted apart at the Gasoil chart. Moreover, the RSI at the Gasoil chart confirmed the bearish constellation, having slipped below 70%. This was another selling signal. With yesterday evening's downward move, much of the bearish potential is likely to have been spent already. Brent and WTI are still trading within their short-term uptrends. Within these trends, there is some slack down to the technical supports but, so far, the RSI at the Brent chart and the technical indicators at the WTI aren't giving any confirming selling signals. Given the intact uptrends of the crude oil futures, we are regarding the technical constellation as only slightly bearish this morning. From a merely technical stance, Brent's development will also depend on the double-top, which formed yesterday when the contract reached its (intraday) high. If this double-top is confirmed today, i.e. if Brent doesn't noticeably exceed 110.30 USD in the coming days, there might be a technical decline.

U.S.

Nymex on average: In early morning trade, oil futures at ICE saw a technical rise after yesterday evening's losses. So far, prices climbed but slowly, however. The traded volume at NYMEX is below average at this time of day. Investors are now eying stock and forex markets, awaiting news regarding Ukraine and Libya, as well as today's economic indicators.

Forecasts: Crude oil +0.9; Distillates -0.3; Gasoline -0.1 million barrels vs previous week.

Houston (ex-wharf indications 20-5)
380cst $608
180cst $663
MGO $981

New Orleans (ex-wharf indications 20-5)
380cst $612
180cst $663
MGO $981

Singapore (delivered indications 20-5)

WTI is up with +$0.22. Singapore paper is down with -$1.75 for 180cst and -$2.25 for 380cst for Jun, and for Jul 180 cst -$1.75 and 380cst -$1.75 with MGO contracts being bearish in Jun with -$0.0.70 and in Jul with -$0.65. The cargo market is bullish with 180 cst with +$5.31, 380cst +$3.96 and MGO with +$0.59.

The Singapore fuel oil prices were trading $3.0-0.0 during the Asian Platts window last Friday. The delivered bunker premiums were seen at app.$2.5 above cargo prices.

380cst $601
180cst $612
MGO $922

Fujairah (delivered indications 20-5)

380cst $608
180cst $640
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $588
(1.0 %) : $648
180cst: $628
MGO 0.1%S: $873