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Oil prices have retreated during morning trade on profit taking, after Yesterday’s gains. Worries over the euro zone currently outweighed the bullish factors like the tensions in the Middle East and the EU's oil embargo against Iran, which will be effective from July 1st.

Yesterday morning, rising in electronic morning trading in a nervous market with little volume. The bullish technical constellation lent support while the euro's and the equity market's influence was limited. In New York session the strike of Norvegian oil workers, the conflict in the Middle East, the EU oil embargo on Iran and US sanctions also helped prices up and in the wake of the leading brent contract oil eventually settled higher in London and New York.

ICE Gasoil contract for July delivery settled at 818.75 dollars on Tuesday. This was 10.75 dollars above Monday's settlement. With some 38,000 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 also today and keeps giving markets a buying signal. During the session in New York oil prices disconnected from the development of the euro and the equity markets, rising strongly and paving the way for some profit taking. Still, crucial fundamentals such as the conflict between Syria and Turkey, the strike in Norway, the oil embargo on Iran and the European summit will be in the center of attention today.

U.S.

Nymex access losing: Oil futures are losing ground in Asian trading and on Globex electronic trading platform this morning as traders take some profit on yesterday's late gains. The traded volume is little below average. Traders will eye the economic indicators today.

API's: Crude oil +0.5; distillates -1.0; gasoline +0.4 million barrels vs previous week. Refinery utilization +0.8%
DOE's; due out tonight
Forecasts: Crude oil -0.3; distillates +1.2; gasoline +1.2 million barrels vs previous week.

Houston (ex-wharf indications 27-6)

380cst $555
180cst $570
MGO $870

New Orleans (ex-wharf indications 27-6)

380cst $557
180cst $587
MGO $868

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

Crude is turning bullish again, gaining with WTI +$0.43. Singapore paper is losing now with -$0.70 for 180cst and -$1.50 for 380cst for Jul, and for Aug 180 cst -$0.65 and 380cst -$1.50 with MGO contracts Jul +$0.50 and Aug +$0.47. The cargo market is tracking crude with 180cst +$4.95, 380cst +$5.39 and MGO +$1.33.

The Singapore fuel oil markets extended its strength, up around +$5.0 during the morning window yesterday tracking crude movement. The market seems to be getting tight moving forward as July incoming cargoes are estimated to be only 2.1 million mt so far. The bunker premiums were seen app. $8.3 above cargo prices. Bunker fuel oil swaps posted app.$8.5/mt gains at the front of the forward curve. Backend was slightly weaker, up by app.$7/mt. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $570
180 cst $580
MGO $800

ARA (Amsterdam - Rotterdam - Antwerp)

The avail constraints continue to underpin both hsfo and lsfo levels. Not much relief is expected within the next couple of weeks, with continuing loading delays, cutter stock shortages and arbitrage loadings reported.

Rotterdam

Indications for delivered bunkers:

380cst : $ 544
(1.0 %) :$ 582
180cst: $ 568
(1.0 %):$ 595
MGO 0.1%S: $820