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Crude oil prices eased marginally in Asia this morning with U.S. markets shut and possible supply disruption issues from Libya and Iraq on the wane.

Despite a bullish DoE report on U.S. oil stocks oil prices at ICE and NYMEX dropped Wednesday night and opened lower on Thursday as traders took profit on the prospect of a rise in Libyan oil exports. The solid support at 110.55 dollars (Brent) stopped the slide and oil prices consolidated their losses at a low level, the surprisingly positive data on U.S. employment not being apt to lend a lasting support. Traders at ICE and NYMEX stayed focussed on Libya. Still, the euro collapsed vs the dollar after the release of the report, making oil more expensive for investors holding the European currency. Tropical storm Arthur that strengthened into a category 1 Hurricane in the course of the day has not yet had an impact on oil. Later in the evening the market more and more lost its dynamics as the majority of traders opted for the consolidation of their risk positions before the long U.S. weekend. Oil prices thus settled lower in London and New York, hitting fresh 3-months lows.

ICE Gasoil contract for July delivery settled at 908.75 USD on Wednesday, this is 5.25 USD below Tuesday's settlement. With some 35,100 deals the traded volume (front month) was well below average.

The Stochastic indicator generated a buying signal at the Brent chart this morning and could trigger such a signal also for gasoil and WTI crude if its two lines cross at the charts while the RSI is still neutral but at the oversold level. The oversold market situation could provoke a technical upward correction if investors start covering their short positions. Still, analysts do not expect important technical movements today in the absence of the U.S. market for Independence Day. The technical constellation thus loses some of its impact on prices as the traders remaining will stay cautious also in case clear technical signals should be triggered. We therefore consider the technical constellation as only slightly bullish today despite the buying signal of the Stochastic indicator.

U.S.

Nymex below avarage: Oil futures at the ICE are edging higher in electronic trading this morning in a market without much direction, supported by the technical buying signal of the Stochastic at the Brent chart. The traded volume at NYMEX is clearly below average for this time of day. Market participants will closely watch stock and forex markets today and keep an eye on the developments in Iraq, Ukraine and Libya. There are only very few economic indicators on the agenda today.

Houston (ex-wharf indications 4-7)
380cst $606
180cst $681
MGO $987

New Orleans (ex-wharf indications 4-7)
380cst $618
180cst $661
MGO $993

Singapore (delivered indications 4-7)

WTI is up with +$0.02. Singapore paper is up with +$1.25 for 180cst and +$1.30 for 380cst for Jul, and for Aug 180 cst +$1.50 and 380cst with +$2.00 with MGO contracts being bullish in Jul with +$0.08 and in Aug with +$0.05. The cargo market is bearish with 180cst -$7.24, 380cst with -$7.34 and MGO with -$2.07.

The Singapore fuel oil prices slumped by $7.0 during the Asian Platts window yesterday. The delivered bunker premiums were seen between $4.5 and $5.5 above cargo prices. Visco spreads weakened even more during the last days and closed at $4.35/mt yesterday. August is trading at app.$7.0/mt while forward prices are assessed in a range of $7.5-8.0/mt for the rest of the year.

380cst $600
180cst $618
MGO $899

Fujairah (delivered indications 4-7)

380cst $615
180cst $644
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $585
(1.0 %) : $625
180cst: $625
MGO 0.1%S: $865