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Oil prices rose in the morning on technical buying after the Brent's 106.80 dollar support had proved strong in electronic trading. Additional support came from the RSI indicator that breached the 30% line at the gasoil chart. The higher opening of European equity markets and a rising euro also underpinned crude. But when gasoil's 912.75 dollar resistance proved strong and the single currency lost the regained ground along with equities, oil prices retreated from their intraday highs. In the absence of fresh fundamentals trade will stay technically motivated also in the afternoon. Only the US consumer confidence that is published at 4.00 p.m. could give some momentum.

After hitting fresh long-term lows last week oil prices consolidated within their technical range in London and New York on Friday but with a bullish tone. When nuclear talks in Baghdad did not bring about the anticipated results (the discussions will be resumed June 18th in Moskow) market participants covered some of their short positions. The euro's intraday gains lent additional support. But resistance lines proved strong across the complex ahead of the long weekend and so oil prices retreated later in the session.

On Monday oil made another attempt to breach resistance lines and this time succeeded. Technical buying orders were triggered in early electronic trading. Encouraging news from Greece, where polls showed more support for pro-bailout parties ahead of the country's election on June 17 lent support in the afternoon. But otherwise there was no fresh momentum as many traders stayed away due to Memorial Day in the USA and Pentecost Monday in most parts of Europe and the traded volume was far below average. So when later in the session the euro and equities dropped, gains at ICE and NYMEX were reversed as traders took profit.

ICE Gasoil contract for June delivery settled at 910.00 dollars on Monday. This was 2.75 dollars above Friday' settlement. With some 27,500 contracts the traded volume was well below average.

The Stochastic oscillator is bullish at all charts today after a buying signal was triggered on Monday. The RSI breached the 30% line except for the G.Oil chart. Should the line be breached later today an additional buying signal would be triggered. The WTI's and the Brent's upside is limited though, as the contracts had already breached their first resistance lines on Monday. The latest price increase was mainly a technically driven upward correction, giving traders the chance to neutralise risky positions, and not a lasting change in trend.

U.S.

Nymex access gaining: Oil futures rose in East-Asia and on Globex electronic trading platform this morning, the G.Oil has already breached its first resistance line in the wake of surging Asian equities and on optimism regarding the situation in Greece. The traded volume is far above average. As there are only a few less important indicators on the agenda today, investors eye stock and forex markets for direction.

Houston (ex-wharf indications 28-5)

380cst $628
180cst $663
MGO $955

New Orleans (ex-wharf indications 28-5)

380cst $631
180cst $666
MGO $960

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

Crude remainded unchaged, while Singapore paper is mixed with -$1.00 for 180cst and -$0.75 for 380cst for Jun, and for Jul 180 cst +$0.25 and 380cst +$0.25 with MGO contracts Jun -$0.05 and Jul -$0.02. The cargo market is mixed as well with 180cst -$2.12, 380cst -$2.57 and MGO +$0.48.

The Singapore fuel oil markets fell more than -$2.0 during the morning window yesterday. Despite the firmer crude values, there are strong selling pressures weakening the fuel oil cracks. The delivered bunker premiums were around $8.25 above cargo prices. Bunker fuel oil swaps posted losses up to $1.25/mt at the front of the forward curve. Backend was slightly stronger, up by app. 75 cents. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $643
180 cst $655
MGO $900

Fujairah (delivered indications 29-5)

380cst $670
180cst $692
MGO $1041

ARA (Amsterdam - Rotterdam - Antwerp)

After last weeks tightness, a drop in demand gave some relief to ARA avails. The offered levels are slightly higher than last week, as crude bolstered Yesterday. Most suppliers are fully booked till the end of the month.

Rotterdam

Indications for delivered bunkers:

380cst : $ 625
(1.0 %) :$ 666
180cst: $ 648
(1.0 %):$ 690
MGO 0.1%S: $905