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Technical indicators: bearish

Oil prices hovered below $101 a barrel this morning ahead of a key U.S. jobs report. In London, Brent crude for July delivery was down 12 cents to $115.42 a barrel.

Yesterday, the oil prices traded in a narrow range in electronic morning trading and rose at midday, supported by the easing dollar. WTI crude prices rose less than the other futures, weighed down by little positive US economic indicators. After the opening of NYMEX session, WTI crude still lagged behind and the petroleum complex dropped to day's lows, falling through support lines after the release of bearish US petroleum inventories as per DOE. As the supports could not be breached for good, oil prices rose short after, paring all of their losses, additionally buoyed by the easing usd. Mixed US indicators had little influence on oil prices, but applied some pressure on the dollar. Initial and continuing jobless claims dropped less-than-expected last week and manufacturing orders fell a larger-than-expected 1.2% in April while productivity rose as expected in the first quarter.

ICE Gasoil contract for June delivery settled at 944.00 dollars Thursday night. This was 15.25 dollars below Wednesday's settlement. Volume with some 43,200 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 edge lower in East Asia and Globex electronic trading this morning as market participants take profit amid bearish US petroleum inventories released Thursday and ahead of US employment data. The traded volume is below average.

APIs: crude oil +3.5; distillates -1.4; gasoline +1.5 million barrels vs previous week. Refinery utilization +0.5%

DOEs: crude oil +2.9; distillates -1.0; gasoline +2.6 million barrels vas previous week. Refinery utilization -0.2%

Forecasts: crude oil -0.9; distillates +0.1; gasoline +0.6 million barrels vs previous week. Refinery utilization +0.7%

Houston (ex-wharf indications 1-6)

380 cst $637
180 cst $667
MDO $977

Very tight avails for 180 cst

New Orleans (ex wharf indications 1-6)

380 cst $639
180 cst $669
MDO $980

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

Crude is looking for direction with +$0.05 Singapore paper is slowing as well gaining with +$1.20 for 180 cst and +$1.20 for 380 cst for Jun, and for Jul 180 cst +$2.00 and 380cst +$2.00 with MGO Jun contracts at +$1.41 and for Jul at +$1.44 The cargo market is ahead of crude, losing with 180cst -$4.69 380cst -$4.53 and MGO -$2.01.

The Singapore fuel oil market was down $4.50 during the Platts window yesterday. The Singapore heavy residual inventory showed a draw of -1.54 mbbl to 20.18 mbbl. Supply is believed to be experiencing some level of short term tightness. The delivered premiums were up to around $11.00 above cargo prices yesterday. Bunker fuel swaps for both Rotterdam 3.5% Barges FOB and Singapore 180cst Cargo FOB lost app. $8.00/mt in the front of the curve and a few more in the backend yesterday. Forward curve in both markets remain in backwardation with Cal2012 papers assessed at the discount of more than $20.00/mt versus spot prices. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $664
180 cst $676
MDO $965

Fujairah (delivered indications 3-6)

380cst: $660
180cst: $680
MGO: $1075

Rotterdam

Indications for delivered bunkers:

380cst: $626
(1.0%): $666
180cst: $652
(1.0%): $694 (very low avails)
MGO 0.1%S: $960