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Technical indicators: neutral

Oil prices ease slightly in electronic trading on profit taking and a stronger dollar/weaker euro that suffers from the unexpected drop in the euro zone manufacturing index PMI in May.

Oil prices started to rise Yesterday morning, breaching first resistances in electronic trading on a weak dollar and hopes for an improval of Greece's debt situation given Germany's alleged considerations of another bailout package. After the strong opening of NYMEX session in the afternoon, oil futures breached more resistance lines as disappointing US economy data weighed on the dollar. News that TransCanada's Keystone pipeline network serving the Cushing oil hub was shut down also helped prices up and NYMEX crude finished at a three-week high.

ICE Gasoil contract for June delivery settled at 962.00 dollars Tuesday night. This was 19.25 dollars above Monday's settlement. Volume with some 42,800 deals little below average.

The Stochastic indicator at the ICE charts is slightly bearish, while the one at the WTI crude chart gives some bullish signals. Still, the indicator is clearly overbought for all contracts, a rising possibility of a technical downward correction. Medium-term uptrends have formed on all charts after resistance lines were breached Tuesday, yet technical analysts see some profit taking in the morning before the uptrend continues. The first support for the WTI crude is seen at 100.30 dollars, the first resistance at 103.40 dollars. The Brent's first resistance is seen at 117.50 dollars, its first support is at 115.50 dollars.

U.S.

Nymex Access easing. Oil prices fluctuate in a narrow range on a high level in East Asia and Globex electronic trading this morning, taking their breath after Tuesday's gains. The persistent weak outlook for the U.S. dollar is lending support. The traded volume is above average.

Houston (ex-wharf indications 31-5)

380 cst $637
180 cst $667
MDO $977

Very tight avails for 180 cst

New Orleans (ex wharf indications 31-5)

380 cst $639
180 cst $669
MDO $980

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

Crude is gaining still with +$0.82 Singapore paper is mirroring it with +$6.70 for 180 cst and +$6.75 for 380 cst for Jun, and for Jul 180 cst +$6.15 and 380cst +$6.20 with MGO Jun contracts at +$0.72 and for Jul at +$0.98 The cargo market is now in line with crude and paper, gaining with 180cst +$6.81 380cst +$7.70 and MGO +$1.61.

The Singapore fuel oil market was up $6.50-8.00 during the Platts window as crude strengthened. The Singapore market is experiencing some short term supply tightness due to lack of on-specifications bunker grade products. The delivered premiums were $6.00- 7.00 above cargo prices yesterday. Bunker fuel swaps gained $11.50-9.50 along the curve both in Rotterdam and Singapore with gains slightly more pronounced in the front of both forward curves. Both papers remain backwardated with Cal 2012 papers assessed at the discount of more than $20.00/mt versus spot prices. This morning both markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $663
180 cst $675
MDO $972

Fujairah (delivered indications 30-5)

380cst: $655
180cst: $681
MGO: $1022

Rotterdam

Indications for delivered bunkers:

380cst: $632
(1.0%): $666
180cst: $656
(1.0%): $695 (very low avails)
MGO 0.1%S: $968