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Technical indicators: neutral to bullish

The Euro pushes higher again approaching the 1.4400 mark. Thus oil futures - traded in USD – are gaining ground on increasing buying interest.

As expected, nothing spectacular happened yesterday as trade impulses were lacking due to US and UK holiday. The traded volume for all contracts was exceptionally low.

OPEC: Brent crude edged below 115 usd this morning on expectations that OPEC's oil output in May would come in higher than April. More oil Saudi Arabia and fellow OPEC members Nigeria and Iraq should push OPEC’s total output higher and more than compensate for a further fall in Libyan supply in May.

ICE Gasoil contract for June delivery settled at 942.75 dollars Monday night. This was 3.00 dollars above Friday's settlement. Volume with some 6,800 deals far below average.

As the red and black line of the Stochastic have not crossed yesterday, the indicator still does not give a clear signal to oil markets today but is still well in overbought territory. This raises the possibility of a downward correction, should bearish fundamentals hit the market and support lines be breached. Analysts see some profit taking in electronic morning trading after the sudden jump in Asian trading hours. Still, the dollar's influence on oil prices must not be underestimated. The first support for the WTI crude is seen at 99.60 dollars, the first resistance at 102.00 dollars. The Brent's first resistance is seen at 116.00 dollars, its first support is at 114.25 dollars.

U.S.

Nymex Access gaining. Oil prices rallied in East Asia and Globex electronic trading this morning, mainly supported by a weaker dollar. Investors already took advantage of the high price level to take some profit. The traded volume is significantly above average.

Houston (ex-wharf indications 30-5)

380 cst $627
180 cst $657
MDO $968

Very tight avails for 180 cst

New Orleans (ex wharf indications 30-5)

380 cst $629
180 cst $660
MDO $972

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

Crude is jumping back up, gaining with +$1.97 Singapore paper is mirroring it with +$6.95 for 180 cst and +$7.25 for 380 cst for Jun, and for Jul 180 cst +$5.95 and 380cst +$6.00 with MGO Jun contracts at +$1.55 and for Jul at +$1.54 The cargo market is starting to turn, reflecting Yesterday's losses with 180cst -$5.58 380cst -$3.82 and MGO -$0.95.

The Singapore fuel oil market fell $3.5 to $5.5 during the Platts window on the start of the week on a sluggish crude movement. The market continued to stay firm on strong buying interest from Brightoil which held the Asian fuel oil crack. The delivered premiums were around $6.00 above cargo prices yesterday. Due to public holiday in UK, there were no Platts publications for the NWE market yesterday. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $654
180 cst $667
MDO $965

Fujairah (delivered indications 30-5)

380cst: $650
180cst: $677
MGO: $1021

Rotterdam

Indications for delivered bunkers:

380cst: $630
(1.0%): $666
180cst: $655
(1.0%): $693 (very low avails)
MGO 0.1%S: $968