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Oil prices have hovered above their first supports this morning - unable to breach them. Given the bullish stochastic indicator, they orientated slightly upward. Around noon, oil futures started to climb sharply after reports saying that the USA has stepped up troops in the Gulf region. Several resistance lines have been breached at ICE and NYMEX. Apart from this, the positive sentiment that had been triggered by the EU summit's resolutions still remains. Worries over a potential threat of a war in the Middle East underpin the nervous markets.

Oil futures started the day lower on Monday when morose EU and Chinese indicators weighed, dragging the euro and equity markets down, but stabilized in the course of the day when news of an Iran bill to block the Strait of Hormuz and a report showing a decline of OPEC production hit the market, limiting the losses. Prices at NYMEX and ICE stayed above their first supports after several attempts to break through had failed.

ICE Gasoil contract for July delivery settled at 849.00 dollars on Monday. This was 0.50 dollars above Friday's settlement. With some 39,000 contracts the traded volume was below average.

The Stochastic indicator is slightly bullish at ICE and NYMEX charts this morning even though at the overbought level. After Friday's rally investors are looking for direction, making markets susceptible to volatility. As the US celebrate Independence Day tomorrow, market participants are expected to consolidate risky positions in the afternoon.

U.S.

Nymex access gaining: Oil futures traded higher in Asian trading and on Globex electronic trading platform this morning on technical buying after short-term support lines at 82.35 dollars (WTI) and 95.50 dollars (Brent) had proved strong on Monday. The traded volume is above average. Traders eye equity and forex markets today as well as a few economic indicators.

Houston (ex-wharf indications 2-7)

380cst $568
180cst $598
MGO $890

New Orleans (ex-wharf indications 2-7)

380cst $568
180cst $603
MGO $890

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

Crude is slowing, but bullish still with WTI +$0.34. Singapore paper is mirroring crude with +$5.05 for 180cst and +$5.05 for 380cst for Jul, and for Aug 180 cst +$5.05 and 380cst +$5.05 with MGO contracts Jul +$0.90 and Aug +$0.91. The cargo market is now responding to the bullish start of the week with 180cst +$13.47, 380cst +$14.18 and MGO +$2.90.

The Singapore fuel oil market prices rose more than +$13.5 during the morning yesterday, tracking crude movements. The bunker premiums slipped to around $7.25 above cargo prices as weaker crude and strong outright prices dampened demand. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $595
180 cst $605
MGO $830

Fujairah (delivered indications 3-7)

380cst $597
180cst $622
MGO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

Although the worries on the Euro zone and global oil demand is slowing continue, 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. High premiums are charged for prompt enquiries, if any avails at all.

Rotterdam

Indications for delivered bunkers:

380cst : $ 576
(1.0 %) :$ 627
180cst: $ 605
(1.0 %):$ 668
MGO 0.1%S: $865