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After technical supports at ICE proved strong, oil futures rebounded rising up to their first resistance lines. Investors' hopes on the ECB lowering its interest rates and the impasse regarding the strike of Norwegian oil workers provided some additional support.

Due to the US Independence Day, NYMEX floor trade remained closed yesterday, whereas ICE and Globex electronic trading platforms already closed at 7.30 p.m. respectively at 7.15 p.m. Market players thus focus on consolidating their riskier positions and after Tuesday's price rally, there was some technical profit taking. The retreating euro also weighed on oil futures, whereas the persisting threats of the Iran to close the Strait of Hormuz, the strike of Norwegian oil workers and speculations on further supportive measures from the ECB have provided some support. Compared to the common currency, oil futures edged but little lower in a thin trade.

A second round of talks between the unions oil workers and employers of the Norwegian oil industry was to resolve the current strike but the negotiations were already interrupted at an early state last evening as the two parties did not find any common ground, even though there was a mediator attending the talks. The strike will now be continued for an indefinite period, whereas the unions want to meet on Thursday to discuss an expansion of the strike. It's the 12th day of strike today and the costs for oil companies already amount to some 335 million dollars. The unions have stated that they were able to continue the strike for a "very, very long time", as employees fully support the action. The longest strike Norway's oil workers ever went on lasted for 12 weeks.

ICE Gasoil contract for July delivery settled at 876.75 dollars on Wednesday. This was 4.00 dollars below Tuesday's settlement. With some 21,400 contracts the traded volume was far below average.

The lines of the stochastic indicator have already crossed at the Brent chart, giving a first selling signal. This is not yet the case for the other futures at ICE and NYMEX. Markets are still considerably overbought prompting a possible downward reaction. However, we still assess the situation as neutral this morning, as the technical cues are likely to be secondary until the ECB's decision on its benchmark interest rate. Technical selling pressure might increase through more impulsions from the stochastic indicator and the RSI if the latter falls below the 70%-line.

U.S.

Nymex access losing: Oil futures consolidated in a narrow range in Asian trading and on Globex electronic trading platform this morning. The traded volume is far above average, as many orders have only been carried out this morning after Yesterday's early close. Traders eye equity and forex markets today as well as economic indicators. Moreover, the ECB will decide on interest rates today and due to the US Independence Day, the DOE's data will be published at 5 p.m.

API's: Crude oil -3.0; distillates -1.1; gasoline -1.4 million barrels vs previous week. Refinery utilization +0.5%
DOE's; due out today.
Forecasts: Crude oil -0.9; distillates -0.1; gasoline +1.2 million barrels vs previous week.

Houston (ex-wharf indications 3-7)

380cst $588
180cst $610
MGO $920

New Orleans (ex-wharf indications 3-7)

380cst $618
180cst $653
MGO $924

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

Crude is slowing, but bullish still with WTI +$0.72. Singapore paper is mirroring crude with +$8.75 for 180cst and +$8.40 for 380cst for Jul, and for Aug 180 cst +$7.50 and 380cst +$7.90 with MGO contracts Jul +$0.68 and Aug +$0.54. The cargo market is firming with 180cst +$10.71, 380cst +$11.18 and MGO +$1.84.

The Singapore fuel oil market prices surged more than $10.5 during the morning window yesterday. The bunker premiums strengthened to $9.5 above cargo prices as crude was stronger and demand was dampened by the higher prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $605
180 cst $615
MGO $850

Fujairah (delivered indications 5-7)

380cst $605
180cst $632
MGO $1010

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 and Crude surging Yesterday. 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 : $ 586
(1.0 %) :$ 636
180cst: $ 611
(1.0 %):$ 674
MGO 0.1%S: $880