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Oil prices breached their first resistance lines as equities have edged higher again after the European leaders had agreed to allow direct access by banks to European aid funds. This has triggered further technical buying orders and has made quotations exceed more resistances at ICE and NYME.

Oil futures traded lower Thursday morning, keeping track of equities and the retreating euro. In the early afternoon and after the opening of NYMEX floor trade, oil markets saw a slight upward correction but investors remained rather tense ahead of the EU summit. Massive losses at US stock markets send oil futures down later in the day. Trade was dominated by profit taking on Wall Street and scepticism regarding the EU summit. Supportive factors like the strike of Norwegian oil workers were put in the background. As other fundamental news were lacking, oil prices only consolidated near their supports at 817.75 dollars for the Gasoil, 81.70 dollars for the Brent and at 78.35 dollars for the WTI. During late trade, these supports were breached by technical selling. Profit taking was not sustainable though and so these losses were pared at night. Given the strike in Norway, the Brent is currently trading more steadily than the WTI crude which briefly fell to its lowest level since October 2011 (77.28 dollars). <

ICE Gasoil contract for July delivery settled at 821.75 dollars on Thursday. This was 7.25 dollars below Wednesday's settlement. With some 56,000 contracts the traded volume was on 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 slightly bullish but gave its selling signal already a week ago and its lines are already converging again. Furthermore, markets slowly move turn to overbought territory. Currently there are no signs for technical selling signals however. Thus analysts assess the technical situation as neutral.

U.S.

Nymex access gaining: Oil futures climbed in Asian trading and on Globex electronic trading platform this morning. After the first positive comments regarding the EU's summit, oil futures and the euro have marked some gains. The traded volume is far above average. Traders look ahead to the performance of stock and financial markets, as well as today's economic indicators see economic calendar and further news regarding the EU's summit.

Houston (ex-wharf indications 29-6)

380cst $560
180cst $575
MGO $865

New Orleans (ex-wharf indications 29-6)

380cst $569
180cst $598
MGO $870

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

Crude is yo-yoing still, dropping againg with WTI -$1.43. Singapore paper is reacting to crude with -$0.75 for 180cst and -$0.50 for 380cst for Jul, and for Aug 180 cst -$0.80 and 380cst -$0.50 with MGO contracts Jul +$0.70 and Aug +$0.72. The cargo market is not yet reacting with 180cst +$5.52, 380cst +$5.19 and MGO +$0.67.

The Singapore fuel oil markets rebounded more than $5.0 during the morning window yesterday. The Singapore heavy residual inventory saw a build of +1.4 mbbl to 20.63 mbbl as June incoming cargoes were estimated to be at 4.2 to 4.3 million mt. The bunker premiums remained around $8.5 above cargo prices yesterday. Bunker fuel oil swaps posted app.$7.5/mt losses at the front of the forward curve. Backend was slightly stronger, down only by app.$5/mt. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $575
180 cst $585
MGO $800

Fujairah (delivered indications 29-6)

380cst $580
180cst $600
MGO $990

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 : $ 552
(1.0 %) :$ 592
180cst: $ 577
(1.0 %):$ 599
MGO 0.1%S: $825