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After equities marked some gains in the early hours of the European session, oil futures in London and New York likewise climb. As risk appetite rose and the euro advanced, investors reduced some of their short positions reinforcing the upward reaction at ICE and NYMEX technically. First short term resistances have already been breached. Prices were bolstered by better than expected German economic data. Official figures showed this morning, that Germany's GDP rose significantly in the first quarter (+0.5%). Consequently stock exchanges opened with gains, whereas the euro already profited from the figures earlier in the morning.

Oil prices opened lower in London and New York on Monday, still weighed down by last week's disappointing indicators from China and the IEA's, EIA's and OPEC's monthly energy reports. The instable political situation in Greece that my lead to the country leaving the euro zone had strongly affected equities on Monday in the wake of which oil prices tumbled as well. Several support lines were breached, triggering a string of technical selling orders. The remarks of Saudi oil minister Ali al-Naimi that 100 dollars was a fair price for brent and OPEC's 1.3 million bpd overproduction also pushed oil lower, the WTI hitting a fresh year-low at 93.65 dollars in the process. The benchmark's support at 93.95 dollars limited the losses but the ailing euro prevented a technical upward correction so that oil prices settled considerably lower in London and New York.

ICE Gasoil contract for June delivery settled at 934.00 dollars on Monday. This was 16.75 dollars below Friday's settlement. With some 90,100 contracts the traded volume was well above average.

Opec: The Saudi Oil Minister Ali al-Naimi said at the weekend that his country would like to bring down the price of benchmark Brent crude to 100 dollars a barrel, as it was still too high. He expects global crude stocks to build ahead of an anticipated seasonal rebound in demand starting in July. Current crude supply was exceeding demand by between 1.3 million and 1.5 million barrels a day, contributing to a build in inventories that was needed ahead of a seasonal pickup in oil demand in the third and fourth quarters of the year, and in view of the European embargo on Iranian oil starting July 1st.

The Stochastic ocillator is no longer bullish at the ICE, even giving a first selling signal at the G.Oil chart, even though oil markets are still strongly oversold. If the two lines of the Brent's Stochastic indicator cross today, more downside is seen but the key supports at 93.30 dollars and 92.50 dollars of the WTI could limit the losses by triggering a modest upward correction.

U.S.

Nymex access losing: Oil prices trade in a narrow lateral range, little changed vs Monday's settlement in East Asia and on Globex electronic trading platform this morning, operators looking for direction after yesterday's hefty losses. The traded volume is about on average. A string of economic indicators is anticipated today and market participants will also eye forex and equity markets as well as the developments in Greece.

Houston (ex-wharf indications 15-5)

380cst $652
180cst $683
MGO $993

New Orleans (ex-wharf indications 15-5)

380cst $647
180cst $678
MGO $998

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

Crude is bouncing sligtly up with WTI +$0.26 Singapore paper is tracking crude with +$8.75 for 180cst and +$8.45 for 380cst for May, and for June 180 cst +$7.50 and 380cst +$7.30 with MGO contracts May +$0.35 and June +$0.35. The cargo market is not yet reacting, losing with 180cst -$4.94, 380cst -$4.63 and MGO -$1.22.

The Singapore fuel oil markets fell more than -$4.5 yesterday morning, tracking the weak crude movement. There is a healthy balance of robust demand and also supply. The delivered bunker premiums remained around $6.75 above cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $670
180 cst $678
MGO $930

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets are quiet, despite the bullish inventory data. The Eastern arbitrage is at workable levels. The loading and barge congestions are improving.

Rotterdam

Indications for delivered bunkers:

380cst : $ 640
(1.0 %) :$ 685
180cst: $ 658
(1.0 %):$ 683
MGO 0.1%S: $930