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Technical indicators: bearish

Oil prices kept losing this morning, weighed down by the rise in the dollar and technically driven selling orders. The gasoil and the brent contract at the ICE fell through support lines, but the WTI's first support was not yet hit.

After having consolidated in electronic trading, oil futures dropped during NYMEX session on Friday, loosing considerable ground on the strong performance of the US dollar. After first support lines were breached across the complex, automatically triggered technical selling orders helped oil prices to fresh lows. While the dollar continued to rise steadily and the euro collapsed on renewed European debt worries, oil prices recovered in late New York session as traders took the opportunity of the low price level to build up new long positions.

ICE Gasoil contract for June delivery settled at 909.25 dollars Friday night. This was 8.50 dollars below Thursday's settlement. Volume with some 68,700 deals above average.

The Stochastic indicator is still slightly bullish while the RSI does not give any clear signals and has settled short above the 30% line. Should the indicator cross the line, markets would get a selling signal. Technical analysts forecast market participants to take profit in the morning on the stronger dollar. There is still no clear tendency to be seen at the crude oil charts in London and New York, but analysts expect oil prices to be oriented today at Friday's lows and highs. The first support for the WTI crude is seen at 96.60 dollars, the first resistance at 100.45 dollars. The Brent's first resistance is seen at 112.75 dollars, its first support is at 110.00 dollars.

U.S.

Nymex Access gaining. Oil prices ease in East Asia and Globex electronic trading this morning as traders are taking profit after Friday's late gains, encouraged by the stronger dollar. The traded volume is slightly above average.

Houston (ex-wharf indications 20-5)

380 cst $611
180 cst $646
MDO $948

Very tight avails for 180 cst

New Orleans (ex wharf indications 20-5)

380 cst $613
180 cst $648
MDO $951

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is gaining bearish momentum losing with -$1.63 Singapore paper is reflecting it with -$10.90 for 180 cst and -$10.90 for 380 cst for Jun, and for Jul 180 cst -$10.90 and 380cst -$10.90 with MGO Jun contracts at -$2.48 and for Jul at -$2.48 The cargo market is slowly starting to react to the bearish sentiment with 180cst -$1.79 380cst -$1.55 and MGO +$0.03.

The Asian fuel oil market was steady on Friday after slipping for two straight sessions, with its prompt time spreads at slightly weaker levels amid the week's thinnest volumes. June's demand-supply fundamentals are expected to be tighter than this month, with less Western inflow, totaling 2.9-3.0 million tones booked, while supplies from the Middle East, which were unexpectedly heavy this month, are also expected to ease. Bunker fuel swaps closed the week with a loss ranging around $8.50- 9.50/mt along the curve both in Rotterdam and Singapore. Losses were slightly more pronounced in the front of the forward curve in both markets. This morning both papers are traded lower.

High premiums for prompt deliveries.

380 cst $622
180 cst $635
MDO $922

Fujairah (delivered indications 23-5)

380cst: $627
180cst: $651
MGO: $1027

Rotterdam

Indications for delivered bunkers:

380cst: $594
(1.0%): $629
180cst: $615
(1.0%): $654 (very low avails)
MGO 0.1%S: $915