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Technical indicators: neutral to bearish immediate term / bullish medium term

Oil prices ease during morning trade on profit taking and weaker-than-expected Chinese economic data, with a commercial balance emerging below analysts' expectations. G.Oil for June delivery is traded for the last time at one o'clock today, the new front month will be July. After already having slightly retreated during morning trade, oil futures corrected yesterday's hike and have dropped considerably after the opening of NYMEX floor trading. First supports have been breached at ICE and NYMEX on technical selling and on worries over China's weaker-than-expected economic data. The second support lines, however, have proved strong later in the afternoon.

Markets might see some profit taking in the morning, yet oil prices should continue to rise after OPEC decision. There are no key indicators on the agenda today and the dollar has lost some of its influence on oil prices.

ICE Gasoil contract for June delivery settled at 985.25.00 dollars Friday night. This was 7.50 to 9.00 up at abut dollars above Thursday's settlement. Volume with some 39,600 deals below average. In order to avoid getting caught in unpredictable end-of-month liquidations, market participants' focus is already on the July contract that is consequently more actively traded. The thin volume of the June contract makes the future volatile and susceptible to price fluctuations.

China's oil demand dropped in May 2011 by 3.8% 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. Stocks dropped on Friday, a day after ending a six-day losing streak as weaker economic data from China and ongoing disputes about a second Greece bailout weighed on sentiment. China's export growth rose slowlier in May, raising questions over the global growth outlook at a time when investors have been rattled by a barrage of reports showing the U.S. economy is slowing down.

• Import prices rose 0.2% in May after +2.1% in April (revised figure). Economists expected a 0.7% decrease.
• Export prices rose 0.2% in the same period after a 0.9% increase in the previous month.

U.S.

Nymex Access gaining. Closed. US is currently closed.

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 losing heavily on profit taking after the overdone gains of the last days with WTI -$2.61 Singapore paper is mirroring crude, gaining with -$1.37 for 180 cst and -$2.55 for 380 cst for Jun, and for Jul 180 cst -$2.25 and 380cst -$2.20 with MGO Jun contracts at -$0.86 and for Jul at -$0.91 The cargo market still on the bull run is yet to react with 180cst +$3.19 380cst +$2.89 and MGO +$1.63.

High premiums for prompt deliveries.

380 cst $676
180 cst $689
MDO $992

Fujairah (delivered indications 13-6)

380cst: $665
MGO: $1015

Rotterdam

Indications for delivered bunkers:

Closed