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After having breached first resistances earlier this morning at ICE and NYMEX, oil prices have temporarily pulled back from their highs in the wake of the softer euro and retreating equities. Around noon, the euro and equities have recovered, while oil futures tested further resistances. This upward reaction was mainly a technical one, as the Brent's support at 90.75 dollars proved strong and there was no bullish news. Given Spain's interest rates having climbed on an auction today, the fundamental situation is also rather bearish.

Oil prices at ICE and NYMEX traded lower Monday morning despite the Stochastic indicator giving a bullish signal at the charts, breaching first short-term supports before noon. Persistant euro zone worries ahead of a crucial EU summit weighed on equities and the euro that lost more ground vs the dollar and affected oil prices in the process. News of a strike of Norvegian oil workers and the production losses in the Gulf of Mexico limited the losses and initiated a rebound when support lines at 805.50 dollars (gasoil), 89.75 dollars (Brent) and 78.00 dollars (WTI) could not be breached.

ICE Gasoil contract for July delivery settled at 808.00 dollars on Monday. This was 4.00 dollars below Friday's settlement. With some 37,000 contracts the traded volume was below average.

OPEC: The price of the basket of OPEC oil prices fell to 88.74 dollars on Friday after having dropped below 90 dollars a barrel on Thursday. At the sidelines of the latest OPEC meeting in Vienna on June 14 Iranian and Venezuelan oil ministers had announced that they would urge an emergency meeting and a reduction of the OPEC quota as soon as the basket price dropped below 90 dollars. Despite the decline other members have said they weren't considering any action for now, obviously waiting if the current measures will affect oil production and prices.

The Stochastic oscillator remains bullish at the charts supporting oil prices from the technical point of view. But the buying signal being already one day old its influence should have diminished after last night's upward correction. So technical analysts are rather neutral today.

U.S.

Nymex access losing: Oil futures lost some ground in Asian trading and on Globex electronic trading platform this morning in a technical reaction to Monday's late losses. The traded volume is little below average. Traders will eye the performance of stock and forex markets and a few economic indicators today. API data to be released tonight are not expected to have much influence on oil prices.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)
Crude oil -0.3; distillates +1.2; gasoline +1.2 million barrels vs previous week

Houston (ex-wharf indications 26-6)

380cst $546
180cst $573
MGO $870

New Orleans (ex-wharf indications 26-6)

380cst $556
180cst $583
MGO $875

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

Crude is back on its bearish track with WTI -$0.12. Singapore paper is ignoring it, gaining with +$5.30 for 180cst and +$5.10 for 380cst for Jul, and for Aug 180 cst +$5.65 and 380cst +$5.45 with MGO contracts Jul +$1.31 and Aug +$1.33. The cargo market is mixed with 180cst +$2.67, 380cst +$2.39 and MGO -$0.06.

The Singapore fuel oil markets managed to gain only around $2.5/mt during Yesterday morning. Market fundamentals seem to have improved with the cargo premium strengthening yesterday. The bunker premiums were seen around $8.5 above cargo prices. Bunker fuel oil swaps lost app.$4/mt at the front and a few cents less at the backend of the forward curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $570
180 cst $580
MGO $810

ARA (Amsterdam - Rotterdam - Antwerp)

The avail constraints continue to underpin both hsfo and lsfo levels, despite falling crude prices. Not much relief is expected within the next couple of weeks, with continuing loading delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 548
(1.0 %) :$ 585
180cst: $ 573
(1.0 %):$ 598
MGO 0.1%S: $816