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West Texas Intermediate and Brent oil futures both rallied to the highest levels since September 2013 this morning, as escalating tensions in Iraq underlined concerns over a disruption to supplies from the Middle East.

Oil traders continued to track a rebellion in Iraq led by a Sunni Islamist group that threatened to take Baghdad after capturing key cities elsewhere in the country earlier in the week. Markets breathed a sigh of relief, however, after U.S. President said he won't sent troops to Iraq and added oil continues to flow normally out of the country, which sent oil prices off earlier highs. Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia. Elsewhere, in the U.S., data released Friday showed that that U.S. consumer sentiment unexpectedly deteriorated in June. The preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2, down from 81.9 in May, missing expectations for an uptick to 83.0. The report came a day after data showed that U.S. retail sales rose less than expected in May, but the previous month was revised higher.

U.S.

Nymex: Crude oil prices rebounded in Asia on this morning, taking note of continued strife in major oil producer Iraq and wider tension in the Middle East.
NYMEX crude prices up in Asia with Iraq tension supporting market Crude oil prices up in Asia
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in August traded up 0.26%, after hitting an overnight session low.

API: Crude oil -5.7; Distillates +0.5; Gasoline ±0.0 million barrels vs previous week.
DOE: Crude oil -0.6; Distillates +0.4; Gasoline +0.8 million barrels vs previous week.
Forecasts: Crude oil -0.8; Distillates +0.4; Gasoline -0.6 million barrels vs previous week.

Houston (ex-wharf indications 19-6)
380cst $617
180cst $717
MGO $990

New Orleans (ex-wharf indications 19-6)
380cst $620
180cst $684
MGO $992

Singapore (delivered indications 19-6)

WTI is down with -$0.35. Singapore paper is up with +$2.00 for 180cst and +$2.50 for 380cst for Jul, and for Aug 180 cst +$1.90 and 380cst with +$2.85 with MGO contracts being bullish in Jul with +$0.47 and in Aug with +$0.48. The cargo market is bullish with 180cst +$6.07, 380cst with +$6.61 and MGO with +$1.71.

The Singapore fuel oil prices rebounded more than $6.0 during the Asian Platts window yesterday tracking the stronger crude movements. The delivered bunker premiums softened slightly to around $3.0 above cargo prices. Visco spreads have lost some strength during the last days and closed at $7.56/mt yesterday. July is trading at app.$6.5/mt while forward prices are assessed in a range of $7.5-8.0/mt for the rest of the year.

380cst $618
180cst $635
MGO $930

Fujairah (delivered indications 19-6)

380cst $622
180cst $648
MGO $984

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $601
(1.0 %) : $641
180cst: $641
MGO 0.1%S: $901