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Despite bolstering stock markets, oil prices edged lower this morning. Selling orders seem to be triggered by the sharp rises last Friday, prompting traders to take profit. If the 100 usd suppot on Brent should be breached, more selling orders will be triggered. For the moment, the psychological important support seems to hold.

China's crude oil imports climbed to a new record high in May, amounting to some 25.5 million tons resp. 6.0 million barrels per day. This was some 14.5% more than in April and 18.2% more than last year. According to market participants, this is due to seasonal maintenance work at refineries having finished and to the fact that China ramped up its oil stocks. As Iran accepts the Chinese currency as a means of payment for oil, China is able to seize the oil market's current oversupply to increase its inventories relatively cheaply.

Oil futures at ICE and NYMEX traded lower Friday morning breaching first supports. Investors were disappointed, as neither the ECB nor the US Fed announced further measures to bolster the economy last week. In the wake of the retreating DAX and a weaker euro, oil prices dropped, breaching first short-term supports. Against the backdrop of Chinese economic data, which were only published at the weekend, and speculations that Spain would ask for financial aid from the EFSF on Saturday, profit taking was limited. The strong performance of US equities and some short covering made oil prices gain considerable ground during late trade. Futures thus settled with some gains. After the release of Chinese economic data and the bailout program for Spain's banking sector, oil futures rose last night and, like the euro and equities, are currently testing their upward potential.

ICE Gasoil contract for June delivery settled at 845.50 dollars on Friday. This was 13.25 dollars below Thursday's settlement. With some 38,300 contracts the traded volume was below average.

The stochastic indicator did not give a selling signal on Friday and so is slightly bullish this morning. The RSI can still be seen as neutral, as it has not yet crossed the 30%-line. If the indicator breaches this line, there will be a new buying signal, see also technical analysis. Technical analysts still assess the situation as neutral for the time being, highlighting the technical gap that occured this morning when opening futures opened much higher than they traded on Friday. According to analysts, this constellation indicates a technical correction that may close the gap. However, this has been hampered by fundamental cues as of now, particularly the strong euro.

U.S.

Nymex access gaining: Oil futures have traded higher in Asian trading and on Globex electronic trading platform this morning, keeping track of the euro's gains and rising Asian equities after the release of Chinese economic data and the announcement of the bailout program for Spanish banks at the weekend. Currently they are edging lower, however. The traded volume is significantly above average. Market players will eye stock and forex markets today. There are no important economic indicators scheduled.

Houston (ex-wharf indications 8-6)

380cst $581
180cst $621
MGO $908

New Orleans (ex-wharf indications 8-6)

380cst $590
180cst $621
MGO $908

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

Crude is bouncing up, surging with WTI +$3.18. Singapore paper is mirroring crude with +$22.30 for 180cst and +$22.25 for 380cst for Jun, and for Jul 180 cst +$20.75 and 380cst +$20.25 with MGO contracts Jun +$2.50 and Jul +$2.50. The cargo market is not yet reacting to the lastest turn with 180cst -$11.72, 380cst -$12.22 and MGO -$2.23.

The Singapore fuel oil markets were down more than -$11.5 last Friday morning. Despite the lower outright prices, market demand was still slow as many expected prices to come off further. The delivered bunker premiums were lower at around $7.25 above cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $602
180 cst $612
MGO $845

Fujairah (delivered indications 11-6)

380cst $615
180cst $630
MGO $1035

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market saw variable demand Thursday as many buyers hesitated to fix in the afternoon following a $2/barrel in Brent crude prices, sources said. High and lows sulfur fuel oil in Rotterdam remained tight following limited blending components in the region and recent Suezmax loadings which has sustained the market because of the avails on both HS and LS. With most suppliers fully booked for the week, earliest already looks like the 13th for suppliers to load new product.

Rotterdam

Indications for delivered bunkers:

380cst : $ 586
(1.0 %) :$ 629
180cst: $ 611
(1.0 %):$ 648
MGO 0.1%S: $860