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Crude oil prices dipped in Asia this morning as investors looked ahead to an OPEC meeting for any signals the group would find ways to accommodate more supply hitting the market from Iran and other nations and also kept an eye on Greece.

Oil futures in London and New York tended to the downside on Thursday morning, weighed down by bearish market fundamentals and a bearish technical constellation. They already dropped below Wednesday's lows in early European trading. Along with the rising euro/dollar, this lead to a sharp decline in domestic prices in the Eurozone in the first half of the day. Even so, the steadier euro also favored short-covering a weaker dollar makes oil futures (priced in dollars) less expensive for investors outside the USA. That is why oil markets saw a slight upward correction during which oil futures retraced earlier losses. When it became clear in the afternoon that the euro wouldn't be able to defend its gains, however, oil prices slumped. WTI fell below the MA7 and more downside was generated when oil prices dropped below Wednesday's lows. As we had expected in our early morning news and in the technical analysis, this added to selling pressure. Once again, traders tried to cut riskier positions ahead of the OPEC's meeting. The fact that traders had held a considerable long position in March and April, has lead them to cut their long position. This weighed on oil prices taking some liquidity off the market. Along with the speculations over the OPEC's decision, this raised volatility. Eventually, oil futures thus settled with losses on Thursday.

ICE Gasoil contract for June delivery settled at 567.00 USD on Thursday, this is -18.50 USD above Wednesday's settlement. With some 44,800 deals the traded volume (front month) was below average.

After having given selling signals on Thursday morning, the stochastic indicator has dropped below 50% by now, confirming its bearish bias. When oil futures at ICE and NYMEX slipped below the MA7 on Thursday, more downward potential was generated. Even though most of the downward potential that was generated by the selling signals of the stochastic indicator was spent during Thursday's price decline, the Bollinger lines leave some downward slack. That is why we assess the technical constellation as rather bearish this morning. Thursday's lows should be key-supports today. If oil futures break below these levels, technical selling pressure would renewedly increase.

U.S.

Nymex on average: Oil futures remain near Thursday's lows, trading in a narrow range as some short covering is preventing sharper losses. The traded volume at NYMEX is on average at this time of day. Investors are waiting for the European market and forex markets to open and for the economic indicators that are on the agenda today. They are also looking ahead to the results of the OPEC's meeting.

Houston (ex-wharf indications 5-6)
380cst $341
180cst $469
MGO $650

New Orleans (ex-wharf indications 5-6)
380cst $353
180cst $399
MGO $623

Singapore (delivered indications 5-6)

WTI is losing with -$1.70. Singapore paper is down with -$10.50 for 180cst with -$11.25 for 380cst for Jun, and for Jul 180 cst -$9.25 and 380cst with -$9.50 with MGO contracts Jun losing with -$1.65 and in Jul with -$1.66. The cargo market is bearish with 180cst -$14.59, 380cst with -$13.81 and MGO up with -$2.51.

380cst $353
180cst $368
MGO $560

Fujairah (delivered indications 5-6)

380cst $363
180cst $385
MGO $724

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $318
MGO 0.1%S: $543