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Technical indicators: bearish

Oil prices softened during morning trade. The oil complex performed on a lower level during morning trade, with weak US jobs data and worries about economic recovery increasing fears of a shrinking US demand. Prices are also weighed down still by the assumed raise of the OPEC's quota. The weak dollar, however, provides some support.

Last Friday, the oil prices edged lower in electronic morning trading on disappointing US indicators and a considerable rise in US crude and gasoline stocks released Thursday. The smallest U.S. jobs growth in eight months in May, released in the afternoon, accelerated oil's fall. The possibility that OPEC will raise supply when ministers meet this week also put pressure on prices and support lines were breached across the complex. During NYMEX session, a softer dollar and political upheaval in the Middle East, however, kept a floor under oil prices that rose til resistance lines and settled at day's highs.

ICE Gasoil contract for June delivery settled at 950.75 dollars Friday night. This was 6.75 dollars above Thursday's settlement. Volume with some 37,800 deals below average.

The stochastic indicator is turning to bullish for Brent and Gasoil, the indicator does not show any signal for WTI yet. During the past few days the overbought situation slightly eased which is taking some technical pressure off prices. Upward trend channels remain unchanged and the supports proved strong, especially regarding NYMEX Crude Oil. Chart analysts thus expect a slightly bullish tendency. The first support for the WTI crude is seen at 98.40 dollars, the first resistance at 101.00 dollars. Brent's first resistance is seen at 116.55 dollars, its first support is at 114.00 dollars.

U.S.

Nymex Access easing. Oil prices edge lower in East Asia and Globex electronic trading this morning, WTI crude lingering around its 100.0 dollar a barrel mark, as market participants take profit amid bearish US employment data and speculation of a possible OPEC output hike. The traded volume is about on average.

Houston (ex-wharf indications 3-6)

380 cst $666
180 cst $697
MDO $984

Very tight avails for 180 cst

New Orleans (ex wharf indications 3-6)

380 cst $668
180 cst $699
MDO $987

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

Crude is losing slightly with -$0.35 Singapore paper is stirless with +$0.20 for 180 cst and +$0.02 for 380 cst for Jun, and for Jul 180 cst +/- 0 and 380cst +/- 0 with MGO Jun contracts at +/-0 and for Jul at +/-0 The cargo market is gaining only slightly with 180cst +$3.02 380cst +$3.31 and MGO +$1.38.

The Singapore fuel oil market was up $5.50-7.50 during the Platts window last Friday. The tightness in bunker grade products especially the 380cst is evidenced as the cargo premium rose strongly $7.50/mt. The delivered premiums remained supported by short term supply tightness; around $10.50 above cargo prices last Friday. Bunker fuel swaps gained app. $3.50/mt along the curve both in Rotterdam and Singapore. Gains were slightly stronger at the front of the forward curve for both papers. Both markets are trading higher today.

High premiums for prompt deliveries.

380 cst $664
180 cst $676
MDO $965

Fujairah (delivered indications 6-6)

380cst: $657
180cst: $685
MGO: $1025

Rotterdam

Indications for delivered bunkers:

380cst: $629
(1.0%): $667
180cst: $654
(1.0%): $693 (very low avails)
MGO 0.1%S: $958