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Oil prices continue to lose, brent breaching below the 100 usd mark. Weak economic data from China and continuing Euro worries are adding to the surprising US stock data, released Yesterday. Traders eye the US employment report, due this afternoon.

After oil prices had slid on Wednesday, they consolidated Thursday morning, testing their upward potential. Momentum was coming from foreign exchange markets, as the European currency slightly recovered from its lows after the release of positive German economic data. Gains were capped, however, as the fundamental and the technical constellation was bearish. In the course of the afternoon oil futures retreated, after data regarding US employment and Chicago's purchasing manager index fell short of expectations. Ahead of the DOE's figures regarding US oil inventories oil futures breached several supports, reinforcing technical selling. The euro also shed its gains in the course of the day prompting investors to take some profits at ICE and NYMEX. The DOE's data were only published at 5 p.m. on Thursday and showed no clear direction. In the course of the evening, the builds in crude oil stocks caused a renewed downward reaction and last night the disappointing Chinese PMI added to the pressure.

ICE Gasoil contract for June delivery settled at 870.75 dollars on Wednesday. This was 11.75 dollars below Tuesday's settlement. With some 47,500 contracts the traded volume was slightly below average.

The stochastic indicator remained bearish at ICE and NYMEX charts this morning, even though there are no new selling signals. As oil futures breached important supports yesterday, the technical situation is still slightly bearish. However, the fact that quotations are in an overbought territory may trigger some short term corrections up. After the disappointing US economic data, investors are likely to focus on US indicators slightly putting the technical situations in the background.

U.S.

Nymex access losing: Oil futures consolidated on a lower level in Asian trading and on Globex electronic trading platform this morning after a disappointing Chinese PMI caused some profit taking last night. The traded volume is slightly above average. Investors eye stock and forex markets and today's economic indicators.

API's: Crude oil -0.4; distillates -0.6; gasoline +2.1 million barrels vs previous week. Refinery utilization +1.8%
DOE's; Crude oil +2.2; distillates -1.7; gasoline -0.8 million barrels vs previous week. Refinery utilization +1.0%
Forecasts: Crude oil -0.4; distillates -0.6; gasoline +2.1 million barrels vs previous week.

Houston (ex-wharf indications 31-5)

380cst $608
180cst $643
MGO $920

New Orleans (ex-wharf indications 31-5)

380cst $604
180cst $637
MGO $930

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

Crude is gaining bearish momentum, dropping like a stone with -$2.57, Singapore paper is tracking crude with -$17.65 for 180cst and -$18.55 for 380cst for Jun, and for Jul 180 cst -$17.85 and 380cst -$18.75 with MGO contracts Jun -$2.80 and Jul -$2.79. The cargo market is fully adopting the bearishness with 180cst -$12.57, 380cst -$11.03 and MGO -$1.42.

The Singapore fuel oil markets plummeted by more than $11.0/mt during the Platts window yesterday. The Singapore heavy residual inventory saw a build of 1.5 mbbl to 20.36 mbbl. The delivered bunker premiums hovered around $7.50/mt above cargo prices. Front month bunker fuel swaps lost approx. $8.5/mt. Prices were a notch stronger at the back of the curve shredding few dollars from the backwardated structure. This morning, markets look soft again.

High premiums for prompt deliveries.

380 cst $610
180 cst $620
MGO $850

ARA (Amsterdam - Rotterdam - Antwerp)

With crashing crude levels, little buying interest is reported. Most suppliers are fully booked till the end of the month, with cargoes only expected at the end of this week, keeping the avails levels tight, with more fixtures expected in June servicing the Eastern arbitrage.

Rotterdam

Indications for delivered bunkers:

380cst : $ 583
(1.0 %) :$ 632
180cst: $ 612
(1.0 %):$ 647
MGO 0.1%S: $865