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Technical indicators: neutral to bearish

Oil futures slide after having breached technical supports and are on track for its worst weekly decline in more than a month amid mounting speculation that Greece won't be able to secure another bailout and will eventually default on its debt. Sales pressure is rising after stop loss orders have been triggered causing new intra-day lows.

Yesterday oil prices traded in a narrow lateral range in the morning before edging higher after Paris-based IEA raised its forecasts for oil demand. However, gains were capped as expected by dollar strength against a basket of currencies including the euro. In its monthly oil market report, the IEA signalled that there was a need for extra crude oil from OPEC as it increased its demand forecast for 2011 and cut its outlook for oil production from OECD countries. When in addition resistance lines proved strong, oil prices fell to intraday lows ahead of NYMEX opening and slightly recovered later when the dollar lost ground vs other major currencies. The Spread between brent and the WTI crude narrowed to around 19 dollars after it had reached a record of 22 dollars beginning of the week.

ICE Gasoil contract for July delivery settled at 948.75 dollars on Thursday. This was 29.75 dollars below Wednesday's settlement. With some 80,000 contracts, the traded volume was above average.

The Stochastic indicator lost its bearish influence this morning and could turn bullish today should the red and the black line cross, triggering a buying signal. The uptrends are intact on all charts, providing more bullish momentum. Yet downward corrections are possible within the trendlines. The first support for the WTI crude is seen at 96.85 dollars, the first resistance at 100.00 dollars. Brent's first resistance is seen at 121.50 dollars, its first support is at 118.80 dollars.

U.S.

Nymex Access gaining. Oil prices are easing in East Asia and Globex electronic trading this morning, weighed down by the rebound in the US dollar with markets still unconvinced that Greece could dodge a default. WTI crude is heading for the biggest weekly drop since May. The traded volume is below average.

Houston (ex-wharf indications 16-6)

380 cst $629
180 cst $659
MDO $974

Very tight avails for 180 cst

New Orleans (ex wharf indications 16-6)

380 cst $632
180 cst $662
MDO $978

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

Crude is dropping like a stone with WTI -$3.14. Singapore paper is tracking crude, losing with -$11.70 for 180 cst and -$10.50 for 380 cst for Jul, and for Aug 180 cst -$11.60 and 380cst -$11.80 with MGO Jul contracts at -$3.39 and for Aug at -$3.31. The cargo market is in line with crude and paper, losing with 180cst -$11.56, 380cst -$10.06 and MGO -$3.78.

The Singapore fuel oil market dropped more than $10.00/mt during the Platts window yesterday on previous lower crude closing. The lower prices attracted some buying from the buyers. The delivered premiums inched up around $9.50 above cargo prices yesterday. Both markets are trading lower this markets.

High premiums for prompt deliveries.

380 cst $644
180 cst $656
MDO $934

Fujairah (delivered indications 16-6)

380cst: $656
180cst: $686
MGO: $1030

Rotterdam

Indications for delivered bunkers:

380cst :$ 620
(1.0 %) :$ 664
180cst :$ 646
(1.0 %) :$ 691
MGO 0.1%S: $ 943