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After having climbed yesterday evening, oil futures have sharply declined this morning breaching several supports at ICE as market participants focused on the euro zone's debt crisis and today's EU summit. After yesterday's positive US economic indicators reasonable figures regarding the US labor market might give some bullish impulses.

After Tuesday's rise, oil futures edged lower on Wednesday morning, breaching first short-term supports. As the Brent's support at 91.80 dollars and the WTI's support at 78.75 dollar proved strong, bullish factors like the strike of Norwegian oil workers, tensions in the Middle East and the technical constellation have prevailed in the course of the afternoon. The softer euro has damped the price increase but positive US economic data and stronger equities provided some momentum. Only when the DOE's data came out and gave mixed cues, buying ebbed at oil markets. Oil futures remained volatile during late trade but still settled with gains.

ICE Gasoil contract for July delivery settled at 829.00 dollars on Wednesday. This was 10.25 dollars above Tuesday's settlement. With some 40,000 contracts the traded volume was below average.

Iran: Japan's crude imports from Iran almost halved in May from a year ago as refiners in the world's third-largest economy lifted less oil in advance of an EU ban on insurance for shipments from Iran that goes into effect on Sunday.

The stochastic indicator is still seen as bullish, whereas oil futures return from the oversold territory. So technically, there have not been any major changes. Quotations are currently approaching their midterm resistance lines within the short term channel that has formed within the past few days. If oil futures exceed these resistances, new buying signals might be triggered. However, fundamental factors, like the EU summit and the strike regarding the Norwegian oil industry, needed to be bullish as well.
v U.S.

Nymex access losing: Oil futures hardly changed in Asian trading and on Globex electronic trading platform this morning. Oil futures were able to stick to their highs trading sideways within a narrow range. The traded volume was slightly below average. Traders will eye the performance of stock and financial markets, as well as today's economic indicators.

API's: Crude oil +0.5; distillates -1.0; gasoline +0.4 million barrels vs previous week. Refinery utilization +0.8%
DOE's; Crude oil -0.1; distillates -2.3; gasoline +2.1 million barrels vs previous week. Refinery utilization +0.7%
Forecasts: Crude oil -0.3; distillates +1.2; gasoline +1.2 million barrels vs previous week

Houston (ex-wharf indications 28-6)

380cst $563
180cst $578
MGO $870

New Orleans (ex-wharf indications 28-6)

380cst $572
180cst $600
MGO $868

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

Crude is gaining bullish momentum with WTI +$0.81. Singapore paper is reacting to crude with +$5.75 for 180cst and +$5.25 for 380cst for Jul, and for Aug 180 cst +$5.80 and 380cst +$5.60 with MGO contracts Jul +$0.63 and Aug +$0.65. The cargo market is turning bearish again with 180cst -$0.73, 380cst -$0.58 and MGO +$0.41.

The Singapore fuel oil markets eased slightly yesterday, slipping -$1.0-0.5/mt during the morning window yesterday. The fundamental forwards continued to be firm as cargo premiums have been gaining. The bunker premiums were seen around $8.5 above cargo prices yesterday. This morning markets are trading slightly down.

High premiums for prompt deliveries.

380 cst $575
180 cst $585
MGO $800

Fujairah (delivered indications 28-6)

380cst $580
180cst $600
MGO $992

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 : $ 549
(1.0 %) :$ 586
180cst: $ 574
(1.0 %):$ 598
MGO 0.1%S: $822