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

Oil futures retreated during early morning trade on the progressing dollar. According to analysts, the complex still focuses on the debt crises in Europe and the USA . Investors feared a slowing economic growth worldwide and thus also a decrease of oil demand.

Technical analysis as well as slightly bearish news provided for some profit taking on Friday morning. ICE and NYMEX futures have breached first temporary supports, nevertheless market participants avoided building larger short positions. In the course of the afternoon the tendency changed, with oil futures edging higher. This was supported by the weaker-than-expected US economic data, as low inflation suggests a higher probability of the Fed to implement new programs to raise liquidity. Oil prices rose until late in the evening but remained within their technical range, not being able to reach their resistances.

ICE Gasoil contract for July settled at 977.25 dollars on Friday. This was 4.75 dollars above Thursday's settlement. With some 57,200 contracts, the traded volume was on average.

OPEC: venezuela 's crude proven oil reserves surpassed those of Saudi Arabia in 2010, the OPEC said in its annual statistical bulletin. The boost in reserves, which comes alongside an upgrade from Iran and Iraq , may empower members of the group who favour a defense of high prices in the long run. But there has been doubts over whether all of Venezuela 's heavy oil is actually viable economically. In an annual statistical report posted on its website, OPEC said Venezuela 's proven crude oil reserves had reached 296.5 billion barrels in 2010, up 40.4% year-on-year and higher than Saudi Arabia 's 264.5 billion barrels. The data broadly confirms Venezuela 's statements which had already said it had reached this level of reserves in January this year.

The the beginning of this week, neither the stochastic indicator nor the RSI gives any impetus to market participants. Regarding the crude oil sorts Brent and WTI, technical triangles have formed, defining today's range. Chart analysts expect that oil futures will test their limits in the course of the day. Should they break away from their temporary range, technical impetus will probably add to this development. The mid-term range for Brent is still seen at 113.40 up to 119.50 dollars, for WTI Crude at 93.50 up to 99.50 dollars. The first support for the WTI crude is seen at 95.85 dollars, its first resistance at 97.75 dollars. The Brent's first resistance is seen at 117.80 dollars, its first support is at 115.50 dollars.

U.S.

Nymex Acces gaining. Oil prices retreat during electronic morning trade. After late Friday evening's intra-day highs, investors reacted with some profit taking this morning. This correction is also supported by the strong dollar. The volume traded at NYMEX is slightly above average. Market participants wait for the opening of the European markets and for further impetus from foreign exchange.

Houston (ex-wharf indications 15-7)

380 cst $655
180 cst $686
MDO $1004

Very tight avails for 180 cst

New Orleans (ex wharf indications 15-7)

380 cst $658
180 cst $689
MDO $1008

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

Crude is bouncing up with WTI +$1.54. Singapore paper is tracking crude with +$9.00 for 180 cst and +$9.50 for 380 cst for Jul, and for Aug 180 cst +$9.00 and 380cst +$9.30 with MGO Jul contracts at +$1.16 and for Aug at +$1.08 The cargo market is yet to react, losing with 180cst -$6.99, 380cst -$7.35 and MGO -$0.25.

The Singapore fuel oil markets fell more than -$7.0/mt during the Platts window last Friday on weaker crude during the window. The Singapore heavy residual inventory reported a draw of -1.67 mbbl to 17.51 mbbl. The delivered premiums inched up to around $7.5/mt above cargo prices last Friday on stronger demand. Bunker swaps gained few dollars both in Rotterdam and Singapore . Prices were stronger in the front of the curve compared to 2012 and forward. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $670
180 cst $681
MDO $964

Fujairah (delivered indications 18-7)

380 cst $679
180 cst $709
MDO $1061

Rotterdam

Indications for delivered bunkers:

380cst : $ 651
(1.0 %) :$ 699
180cst: $ 678
(1.0 %):$ 728
MGO 0.1%S: $ 978