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Crude oil futures slumped this morning, as investors continued to unwind positions that had priced in the possibility of major supply disruptions stemming from the bloody Iraqi insurgency.

Traders had begun to reduce the risk premium on oil in the course of last week as, even though production outages in Iraq cannot be completely ruled out, the fighting and the advance of ISIS terrorists have not yet hit the oil production facilities in the South of the country. Oil exports should even increase, so the Iraqi Oil Minister, Abdul Karim Luaibi. Operators consequently took profit and build up short positions on the news. On Friday oil's rise was halted when market participants consolidated these risk positions and opted for some short coverings. The EU countries presented Moscow and the separatists in the Ukraine with an ultimatum that expires tonight and supported prices on before the weekend. In a volatile market with a thin volume traders took more profit as most of them do not feel that higher pricer are justified without any production outages in Iraq. Crude prices at ICE and NYMEX thus settled close to their opening course while the G.Oil breached some short-term support lines, settling near its weekly lows.

ICE Gasoil contract for July delivery settled at 920.75 USD on Friday, this is 4.00 USD below Thursday's settlement. With some 35,900 deals, the traded volume (front month) was below average.

The technical indicators do not give any fresh signals this morning. ICE futures are trading in a short-term downtrend, having already dropped below Friday's lows. This signals that prices will try their downside today. Should the Brent breach its 112.55 dollar support or event its 112.30 dollar support, more technically driven selling orders would be triggered. This is why we assess the technical constellation as slightly bearish this morning.

U.S.

Nymex below avarage: Oil prices keep loosing ground at ICE and NYMEX in Asian trading this morning, having already dropped below Friday's lows in a calm market. The traded volume at NYMEX is little below average at this time of day. This Monday, 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 30-6)
380cst $609
180cst $682
MGO $987

New Orleans (ex-wharf indications 30-6)
380cst $616
180cst $660
MGO $997

Singapore (delivered indications 30-6)

WTI is down with -$0.57. Singapore paper is down with -$1.60 for 180cst and -$1.25 for 380cst for Jul, and for Aug 180 cst -$1.60 and 380cst with -$1.50 with MGO contracts being bearish in Jul with -$1.25 and in Aug with -$1.23. The cargo market is bearish with 180cst -$2.78, 380cst with -$3.55 and MGO with -$0.37.

The Singapore fuel oil prices fell by more than $2.5 during the Asian Platts window last Friday tracking the softer crude prices. Market fundamentals remain relatively stable with less incoming cargoes coupled with fragile demand. The delivered bunker premiums were app. $5.0 above cargo prices last Friday.

380cst $612
180cst $630
MGO $922

Fujairah (delivered indications 30-6)

380cst $620
180cst $643
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $592
(1.0 %) : $627
180cst: $632
MGO 0.1%S: $891