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Technical indicators: neutral

After an initial bullish start, oil futures are slowing in their gains during morning trade. As NYMEX remains closed due to the U.S.' national holiday, market participants expect a rather calm trade. Without any important economic data scheduled today, focus is on the technical world.

Oil futures started with a tendency to retreating at ICE and NYMEX on Friday, with market participants consolidating their risks and liquidating long positions ahead of the longer weekend. Furthermore, there was some profit taking on disappointing Eurozone and US economic data published in the morning. Although first supports had been breached, no larger selling orders were triggered. Given the long weekend, investors avoided voluminous positions. Thus, in the course of the evening oil futures returned from their intra-day highs, settling lower than Thursday.

ICE Gasoil contract for July settled at 909.75 dollars on Friday. This was 16.75 dollars below Thursday's settlement. With some 40,400 contracts, the traded volume was below average.

The stochastic indicator is only slightly bullish today, having lost much of last week's buying momentum already. The WTI Crude's resistance at 95.85, which up to now proved strong, still limits the upward potential throughout the complex. Analysts expect, prices will again be testing this area within the next few days. As for today, trade is expected to be calm, as the USA is celebrating Independence Day. According to analysts, momentum is mainly given by stock and foreign exchange. The first support for the WTI crude is seen at 93.75 dollars, its first resistance at 95.45 dollars. The Brent's first resistance is seen at 112.50 dollars, its first support is at 110.25 dollars.

U.S.

Nymex Acces gaining. Oil futures are a little steadier during electronic morning trading. In the early morning prices edge higher reacting to the Euro's slight gains. Due to the US holiday, the volume traded at NYMEX is far below average for this time of day. Investors are waiting for the opening of the European markets and for further momentum by foreign and stock exchange.

Houston (ex-wharf indications 1-7)

380 cst $636
180 cst $666
MDO $937

Very tight avails for 180 cst

New Orleans (ex wharf indications 1-7)

380 cst $638
180 cst $668
MDO $941

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

Crude is turning bullish again, gaining with WTI +$0.78. Singapore paper is ignoring crude, losing with -$4.75 for 180 cst and -$3.05 for 380 cst for Jul, and for Aug 180 cst -$2.75 and 380cst -$3.05 with MGO Jul contracts at +$0.10 and for Aug at +$0.13. The cargo market is gaining still, but slowing with 180cst +$0.81, 380cst +$3.21 and MGO +$0.44.

The Singapore fuel oil market rose ranging $1.00 to $3.00 during the Platts window last Friday. The varying increase can be seen in the higher demand for 380cst as compared to the 180cst as cargo premium rose to $7.00/mt for the 380cst cargoes. The delivered premiums were around $10.50 above cargo prices last Friday. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $653
180 cst $664
MDO $931

Fujairah (delivered indications 4-7)

380cst: $646
180cst: $681
MGO: $1042

Rotterdam

Indications for delivered bunkers:

380cst :$ 628
(1.0 %) :$ 685
180cst :$ 650
(1.0 %) :$ 708
MGO 0.1%S: $ 926