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Crude oil prices continued to fall into Asia this morning as ample supplies outweigh, for now, the threat of disruption of shipments from Iraq and U.S. data pointed to weaker than expected demand.

Oil prices at ICE and NYMEX traded in a narrow range Thursday morning in Asia and during Globes electronic trade, market participants consolidating their positions after a volatile session the night before. At the beginning of European trading prices declined when traders at the ICE started taking profit from the risk premium on oil after the Iraki oil minister had announced that the countries's oil exports are expected to increase in July despite continued fighting in the North. From the technical point of view the RSI gave a selling signal at the Brent chart after the indicator had breached the 70 line while more disappointing U.S. indicators also weighed. Trading volume considerably decreased at the NYMEX after the kickoff of the US-Germany soccer match. "The volume magically dried up when the game started," said Phil Flynn, analyst with Price Futures Group. This limited oil's losses as the few traders left covered their short positions which temporarily helped the futures up. Still, at the end of the day oil prices at the ICE hit their lows while WTI crude compensated some of its earlier losses.

ICE Gasoil contract for July delivery settled at 924.75 USD on Thursday, this is 4.00 USD below Wednesday's settlement. With some 40,300 deals, the traded volume (front month) was below average.

The RSI gave a selling signal on the Brent chart on Thursday while the Stochastic indicator's buying signal at the WTI chart has been absorbed, encouraging investors to take some profit. The RSI's downward potential has also been absorbed but nevertheless a short-term downtrend has formed at the ICE, signalling that Thursday's low could be hit again today. In the absence of any fresh signals this morning we consider the technical constellation as slightly bearish this morning. Should the two lines of the Stochastic at the WTI chart cross again, however, a bullish signal would be triggered and the technical constellation would become rather bullish.

U.S.

Nymex below avarage: Oil prices consolidated their losses at ICE and NYMEX in Asian trading this morning, moving in a narrow range after last night’s short covering. The traded volume at NYMEX is little below average at this time of day. This Friday, investors will closely watch stock and forex markets and the release of some economic indicators. They also keep monitoring the developments in Iraq and Ukraine.

Houston (ex-wharf indications 27-6)
380cst $613
180cst $689
MGO $996

New Orleans (ex-wharf indications 27-6)
380cst $619
180cst $664
MGO $997

Singapore (delivered indications 27-6)

WTI is down with -$0.58. Singapore paper is down with -$3.25 for 180cst and -$3.00 for 380cst for Jul, and for Aug 180 cst -$3.00 and 380cst with -$3.00 with MGO contracts being bearish in Jul with -$0.42 and in Aug with -$0.41. The cargo market is bearish with 180cst -$1.10, 380cst with -$0.32 and MGO with -$0.18.

The Singapore fuel oil prices softened during the Asian Platts window yesterday, assessed between -$1.0 and flat. The Singapore heavy residual inventory saw a slight draw of -0.04 mbbl to 21.86 mbbl. The delivered bunker premiums were around $4.0 and $6.0 above cargo prices.

380cst $615
180cst $632
MGO $928

Fujairah (delivered indications 27-6)

380cst $620
180cst $646
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $597
(1.0 %) : $631
180cst: $637
MGO 0.1%S: $898