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Technical indicators: bullish

Oil futures traded on a higher level during early morning trading. First resistance lines have been breached at ICE and NYMEX, triggering further buying orders. The OPEC's secretary general, Salem El-Badri, criticised the IEA for its decision to release strategic oil reserves. El-Badri claimed, by doing so, the IEA had used a means for emergencies, for which there was currently no reason, and he hoped this measure will be stopped soon. The Iranian official: Oil Minister Aliabadi confirmed to have counselled other OPEC members on an extraordinary meeting. The sharp drop in prices needed to be limited.

Oil futures started slightly lower on Monday morning testing their downward potential. First supports had been breached, not triggering any larger selling orders, however. The direction turned around on a retreating dollar in the afternoon, with oil prices edging higher. Due to this and NYMEX Crude oil testing supports at 89.60 dollars and 90.00 dollars several times, the spread between Brent and WTI crude rose again. At the end of the session there was a preliminary consolidation, giving oil prices some technical impulses.

ICE Gasoil contract for July delivery settled at 873.50 dollars on Monday. This was 1.00 dollar below Friday's settlement. With some 55,800 contracts, the traded volume was on average.

Regarding WTI crude, the selling signal given by the stochastic indicator yesterday still has a bearish effect. As for NYMEX Crude oil, a bottom has developed at a mark between 89.60 dollars to 90 dollars, which is considered an important support today. Should this support be breached, there will be further downward potential up to 89 dollars. After prices have edged higher during yesterday's evening trade, analysts expect some profit taking and consider the given downward trends as still valid. Crucial momentum might again be given by the Euro/Dollar parity today. The first support for the WTI crude is seen at 89.60 dollars, the first resistance at 92.35 dollars. The Brent's first resistance is seen at 106.80 dollars, its first support is at 102.30 dollars.

U.S.

Nymex Access losing. Oil prices edge lower during electronic morning trading. According to market participants, there is some profit taking after prices slightly rose during yesterday's evening trading. The volume traded at NYMEX is under average for this time of day. Investors are waiting for the opening of the european markets and new momentum given by foreign exchange.

Houston (ex-wharf indications 27-6)

380 cst $612
180 cst $643
MDO $904

Very tight avails for 180 cst

New Orleans (ex wharf indications 27-6)

380 cst $615
180 cst $646
MDO $907

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

Crude is bouncing up slightly, gaining with WTI +$0.29. Singapore paper is up as well with +$5.50 for 180 cst and +$5.70 for 380 cst for Jul, and for Aug 180 cst +$5.25 and 380cst +$5.20 with MGO Jul contracts at +$0.95 and for Aug at +$1.00. The cargo market is bearish still, but slowing with 180cst -$5.97, 380cst -$7.23 and MGO -$1.12.

The Singapore fuel oil market was down more $6.00/mt during the Platts window Yesterday tracking the weaker crude. The Singapore heavy residual inventory saw a build of 2.82 mbbl to 20.79 mbbl. The delivered premiums slipped to around $13.00 above cargo prices yesterday on quieter demand. This morning, both Rotterdam and Singapore fuel papers are trading higher.

High premiums for prompt deliveries.

380 cst $648
180 cst $637
MDO $890

Fujairah (delivered indications 28-6)

380cst: $627
180cst: $672
MGO: $1021

Rotterdam
Indications for delivered bunkers:

380cst :$ 608
(1.0 %) :$ 663
180cst :$ 631
(1.0 %) :$ 694
MGO 0.1%S: $ 891