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Oil prices and the euro traded sideways in a narrow range this morning. The WTI crude hit its resistance at 82.25 dollars but has not succeeded in breaching it sustainably, yet. Only if this is the case and if the RSI crosses the 30%-line at NYMEX and ICE further buying orders will be triggered. Gains are currently limited by the rather bearish fundamental factors, as the OPEC is unlikely to cut its quota and worries about Spain linger.

Oil futures at ICE and NYMEX traded higher Monday morning on hopes of an economic recovery after positive Chinese indicators and the 100 billion dollar aid for Spanish banks. But initial euphoria over the bank bailout quickly waned as investors feared payments could come ahead of regular government debt in the queue for repayment, and that Italy would be next to demand aid. A rising risk aversion triggered a string of profit taking, pushing oil, the euro and equities lower late in the session and helping already weak prices drop to their lows of the day, breaching several short-term support lines in the process. So the technical gap that occured yesterday was closed. Oil futures fell further in after-hours trading on comments of Saudi Arabian oil minister Ali Naimi saying his country would continue to meet customer demand for oil.

ICE Gasoil contract for June delivery settled at 851.25 dollars on Monday. This was 5.75 dollars above Friday's settlement. With some 41,000 contracts the traded volume was below average.

The RSI failed to breach the 30% line yesterday but the Stochastic indicators' lines crossed, giving markets a selling signal yesterday. During the subsequent downward correction the technical gap was closed. Even though technical analysts are somewhat bearish this morning they do not rule out a modest upward correction on short covering given the extent of Monday's losses. Still the fundamentals such as euro zone worries and overproduction dominate the markets.

U.S.

Nymex access gaining: Oil futures edged higher in Asian trading and on Globex electronic trading platform this morning, keeping track of the euro's gains in a technical reaction to yesterday's losses and on short covering. The gains are limited, though. The traded volume is far above average. Due to a lack of economic indicators market players will eye stock and forex markets today.

Houston (ex-wharf indications 11-6)

380cst $578
180cst $614
MGO $900

New Orleans (ex-wharf indications 11-6)

380cst $582
180cst $613
MGO $900

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

Crude is back on its bearish track, countering Yesterday's gains with WTI -$3.52. Singapore paper is turning as well with -$12.25 for 180cst and -$13.50 for 380cst for Jun, and for Jul 180 cst -$13.05 and 380cst -$13.60 with MGO contracts Jun -$2.96 and Jul -$2.94. The cargo market is reflecting Yesterday's bullishness, gainging with 180cst +$21.55, 380cst +$21.64 and MGO +$2.50.

The Singapore fuel oil markets rose more than $21.5 during the morning Platts window yesterday tracking the strong crude movement. Although the near term supplies looked ample, fundamentals look to be strengthening forward. The delivered bunker premiums were lower at around $6.75 above cargo prices yesterday. Bunker fuel oil swaps gained up to $9/mt at the front for Singapore papers. Prices at the backend of the forward curve were slightly weaker adding a few dollars to the backwardated structure. This morning markets are trading lower.

High premiums for prompt deliveries.

380 cst $590
180 cst $600
MGO $820

Fujairah (delivered indications 12-6)

380cst $615
180cst $630
MGO $1035

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker market had an active start of the week, but after crude values dropped, demand faded. Despite crude losing, the local avails are still tight, with most suppliers fully booked for the week.

Rotterdam

Indications for delivered bunkers:

380cst : $ 569
(1.0 %) :$ 610
180cst: $ 592
(1.0 %):$ 631
MGO 0.1%S: $842