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Technical indicators: neutral to bullish

Oil prices eased somewhat on profit taking and on first signs Saudi Arabia is increasing it's output. Also China's oil demand dropped in May 2011 but rose compared to the same period in 2010. Data released this morning by the world's second largest oil consumer showed that May 2011 imports dropped 3.8% to 21.55 million tons from a month earlier, but rose 20.8% on year.

Yesterday, futures traded in a narrow range in the morning, slightly easing before midday as traders took some profit and the dollar climbed. During NYMEX session, however, oil got support from OPEC's comments and technical buying orders following a rally in US stock markets pushed the whole complex despite a strongly rising dollar.

ICE Gasoil contract for June delivery settled at 977.00 dollars Thursday night. This was 6.50 dollars above Wednesday's settlement. Volume with some 39,600 deals below average.

The Stochastic indicator at the Gasoil, Brent and WTI chart is still clearly bullish this morning but is set to enter overbought territory. The RSI lingers in neutral territory. Technical analysts reckon with more technical buying orders today but also see a probability of some profit taking should the dollar stay strong. Yet prices should fall not lower than first support lines. The first support for the WTI crude is seen at 100.70 dollars, the first resistance at 102.45 dollars. Brent's first resistance is seen at 121.00 dollars, its first support is at 119.00 dollars.

U.S.

Nymex Access gaining. Oil prices trade in a narrow range on a high level in East Asia and Globex electronic trading this morning, still supported by OPEC comments on rise in demand. WTI crude is currently loosing ground. The traded volume is below average.

Houston (ex-wharf indications 9-6)

380 cst $667
180 cst $697
MDO $988

Very tight avails for 180 cst

New Orleans (ex wharf indications 9-6)

380 cst $669
180 cst $699
MDO $991

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

Crude is slowing in it gains with +$0.13 Singapore paper is mirroring crude, gaining with +$3.00 for 180 cst and +$3.50 for 380 cst for Jun, and for Jul 180 cst +$3.30 and 380cst +$2.75 with MGO Jun contracts at +$1.72 and for Jul at +$1.71 The cargo market is more bullishwith 180cst +$10.79 380cst +$9.17 and MGO +$1.85.

The Singapore fuel oil market was up $9.00- 11.00/mt during the Platts window yesterday on previous stronger crude closing. Bunker demand has been soft on the higher outrights prices and the delivered premiums slipped to around $9.50 above cargo prices yesterday. Supply in Singapore is said to be still tight in the near term. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $677
180 cst $688
MDO $995

Fujairah (delivered indications 10-6)

380cst: $675
180cst: $697
MGO: $1032

Rotterdam

Yesterday in the MOC hsfo was traded between 640-642 usd and lsfo at 684 usd.

Indications for delivered bunkers:

380cst: $655
(1.0%): $698
180cst: $673
(1.0%): $718 (very low avails)
MGO 0.1%S: $992