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Technical indicators: neutral to bullish

Oil Futures rose on a stronger dollar and technical buying orders. After the dollar's course improved in the morning, ICE Gasoil and Brent breached the first resistance lines. This development is also influenced by the good performance of the European stock exchanges.

Yesterday, oil prices started to increase in electronic morning trading, accelerating gains during NYMEX session. WTI crude rose just above 100.00 dollars a barrel, the highest in a week, as the weak dollar and bullish price forecasts from U.S. investment banks spurred traders' interest in commodities. Oil analysts at Goldman Sachs and Morgan Stanley raised their price forecasts on Brent crude Tuesday, saying global economic growth will continue to pressure spare capacity among major oil producers. Positive figures from China also helped support the oil complex. The rally was halted when important 100.00 dollar resistance line for the WTI crude proved strong (high of 100.09 dollars).

ICE Gasoil contract for June delivery settled at 919.25 dollars Tuesday night. This was 19.75 dollars above Monday's settlement. Volume with some 39,900 deals below average.

The Stochastic indicator on the WTI chart is still slightly bearish, the ones for the brent and the gasoil are seen neutral this morning. Technical analysts see WTI crude stick to its range between 95.50 dollars and 101.50 dollars. Technical triangles have formed on all charts with strong support and resistance lines. The euro/dollar parity will remain the most important factor also for today. The first support for the WTI crude is seen at 96.80 dollars, the first resistance at 99.75 dollars. The Brent's first resistance is seen at 112.50 dollars, its first support is at 108.70 dollars.

U.S.

Nymex Access gaining. Oil prices edge lower in East Asia and Globex electronic trading this morning, WTI crude dropping from the highest in almost a week, on technical selling after important resistance lines proved strong Tuesday and the strong build in US gasoline stocks weighs. The traded volume is far above average.

Houston (ex-wharf indications 24-5)

380 cst $607
180 cst $642
MDO $938

Very tight avails for 180 cst

New Orleans (ex wharf indications 24-5)

380 cst $609
180 cst $644
MDO $941

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

Crude is losing slightly again after Yesterday's surge with -$0.12 Singapore paper is slowing, but not yet turning with +$4.45 for 180 cst and +$4.50 for 380 cst for Jun, and for Jul 180 cst +$8.32 and 380cst +$8.17 with MGO Jun contracts at -$0.15 and for Jul at -$0.14 The cargo market is reflecting the bullishness the week started with, gaining with 180cst +$8.32 380cst +$8.17 and MGO +$1.12.

The Asian fuel oil was assessed app. $8.00/mt higher during the Platts window yesterday tracking stronger crude. Bunker fuel swaps yesterday gained app.$15.00/mt along the curve both in Rotterdam and Singapore. Gains were slightly more pronounced in the front of the forward curve for both papers. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $620
180 cst $637
MDO $910

Fujairah (delivered indications 25-5)

380cst: $635
180cst: $677
MGO: $1030

Rotterdam

Yesterday in the MOC hsfo was traded between 603-605 usd and lsfo between 630-637 usd.

Indications for delivered bunkers:

380cst: $609
(1.0%): $640
180cst: $635
(1.0%): $667 (very low avails)
MGO 0.1%S: $928