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West Texas Intermediate oil futures traded near a five-week high this morning, as investors awaited the release of key U.S. data later in the session for further indications on the strength of the economy.

After the presidential elections in Ukraine went relatively smoothly last weekend, traders already took some profits from their long positions in early Monday morning trading. Investors had raised these long positions ahead of the weekend in order to hedge an escalation of the situation in Ukraine. Particularly futures at ICE retreated in this phase whereas futures at NYMEX remained comparatively steady. This was due to investors anticipation that the Memorial Day weekend will show the highest oil demand for a weekend since 2005. Moreover, Memorial Day heralded the summer season which is usually marked by a stronger demand. Particularly gasoline demand is expected to considerably rise. Still, trade remained rather listless yesterday and so, oil futures consolidated on a low level until late in the afternoon. Many traders in Great Britain and the USA stayed absent due to the holiday (Spring Bank Holiday, resp. Memorial Day). That is why the traded volume was rather thin at oil markets. In late trade and overnight, oil futures regained some ground paring Monday morning's losses. Prices were slightly buoyed by the renewed fighting in Donetsk, which became more and more intense on Monday. Apart from this, analysts renewedly expect a draw in US crude oil inventories.

ICE Gasoil contract for June delivery settled at 909.25 dollars on Monday. This was -3.50 USD below Friday's settlement. With some 15,000 deals, the traded volume (front month) was far below average.

The stochastic indicator can be interpreted as neutral at the Brent chart this morning as its lines are converging. The technical constellation that was still slightly bearish at this chart yesterday morning has thus neutralized. The RSI didn't provide a confirming selling signal in thin trade yesterday, neither at the Brent chart, nor at the other charts (Gasoil and WTI). Currently, none of the indicators are giving any crucial signals and so the technical constellation can be regarded as neutral.

U.S.

Nymex above average: After the losses oil futures marked early Monday morning, prices are currently seeing a counter reaction. Quotations at ICE are thus regaining ground. On the one hand, they are supported by the steadier euro, on the other hand by the expectations of a significant rise in US oil demand over the prolonged weekend. The traded volume at NYMEX is clearly above average at this time of day. Investors are now monitoring stock and forex markets, looking ahead to news regarding Ukraine and Libya. Moreover, they are looking ahead to the release of some US economic indicators.

Houston (ex-wharf indications 27-5)
380cst $608
180cst $665
MGO $993

New Orleans (ex-wharf indications 27-5)
380cst $610
180cst $694
MGO $995

Singapore (delivered indications 27-5)

WTI is down with -$0.76. Singapore paper is down with -$0.50 for 180cst and ±$0.00 for 380cst for Jun, and for Jul 180 cst ±$0.00 and 380cst is up with +$0.50 with MGO contracts being bullish in Jun with +$0.70 and in Jul with +$0.72. The cargo market is bearish with 180 cst -$1.35, with 380cst going up with +$0.17 and MGO is down with -$0.20.

The Singapore fuel oil prices fell between -$1.5 to flat during the Asian Platts window yesterday tracking crude movements. Market was generally quieter as major US and UK markets were off on public holiday. The delivered bunker premiums were seen around +$3.5 to +$5.5 above cargo prices.

380cst $605
180cst $620
MGO $918

Fujairah (delivered indications 27-5)

380cst $614
180cst $648
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $585
(1.0 %) : $649
180cst: $625
MGO 0.1%S: $884