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Morning trade was predominated by selling after the strike in Norway was ended and the government ordered a compulsory settlement. After which oil futures have suddenly regained some ground. However, being pushed higher by several factors that made investors turn to riskier assets again. After the resolutions that were made during the meeting of European finance ministers in Brussels, yields for Spanish and Italian bonds have slightly retreated. Equities jump after the release of data regarding the UK's industrial production. Instead of declining by -0.2%, industrial production in Great Britain rose by +1.0% in June, compared to the previous month. This positive figure took investors by surprise and increased their readiness to take risks. Gains at stock markets and the steady euro, resp. the weak dollar, have made oil futures regain ground again approaching first (Brent) and second resistance lines (G.Oil).

Oil futures have consolidated in a rather narrow range Monday morning, trading sideways. As the fundamental situation was bullish, oil prices have tested their first resistance lines in the course of the day but have been unable to breach them sustainably. The slightly bearish technical constellation prompted investors to take some profits, whereas the announced lockout of Norwegian oil workers provided a bullish note. Traders and analysts predicted that supply - especially in Europe - would become very tight in case of further production shortfalls but they expected the conflict to be solved until the afternoon. Thus the strike's impact on prices was considered as temporary and only priced in to a limited extent. During late trade, however, there was still no solution and so the bullish tone prevailed. Oil futures breached several resistance lines last night reaching new highs. Only after midnight, when Norway's oil producers wanted to shut down their installations, the strike was settled by the government that told oil workers to get back to work again. Quotations significantly retreated after this announce.

ICE Gasoil contract for July delivery settled at 873.75 dollars on Monday. This was 5.00 dollars above Friday's settlement. With some 32,900 contracts the traded volume was on average.

OPEC: Iran's oil minister has called for an irregular meeting of the OPEC member states at the beginning of this month, as the oil price remains clearly below 100 dollars and might even fall further down. Algeria backed this demand. The OPEC's secretary general, Iraq's oil minister Abdul Kareem Luaiby, passed the decision on to the members of the organisation. In a latter dispatched on Thursday Luaiby called for a vote regarding this request. There are no reports on any official responses or decision yet.

The stochastic indicator remains bearish this morning, whereas it gave its selling signal already some days ago. The RSI has now slid below the 70%-line at the Brent charts as well, giving another selling signal to market players, see also technical analysis. According to analysts, this might trigger some technical profit taking and tests of the first supports. If the WTI crude falls below the mark of 84 dollars, that proved strong during the past two days, there might be new selling signals.

U.S.

Nymex access easing: Oil futures have retreated in Asian trading and on Globex electronic trading platform this morning. After the strike in Norway was ended by the government, investors have reduced some of their long positions. The traded volume is above average. Market players now eye equity and forex markets as well as the API's forecast of US oil inventories (published tonight at 10.30 p.m. There are no important economic indicators scheduled today.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE).

Crude oil -1.3; distillates +0.5; gasoline -0.4 million barrels vs previous week.

Houston (ex-wharf indications 9-7)

380cst $595
180cst $621
MGO $915

New Orleans (ex-wharf indications 9-7)

380cst $592
180cst $645
MGO $920

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

Crude is bouncing up slightly with WTI +$0.23. Singapore paper is bearish still with -$2.70 for 180cst and -$1.50 for 380cst for Jul, and for Aug 180 cst -$1.95 and 380cst -$2.25 with MGO contracts Jul -$0.06 and Aug -$0.14. The cargo market is gaining bearish momentum with 180cst -$10.32, 380cst -$10.53 and MGO -$0.90.

The Singapore fuel oil markets prices were down by more than $10/mt Yesterday. Market looks pretty weak as cargo premiums had softened. The delivered bunker premiums were at $7.25/mt above cargo prices. Bunker fuel swaps closed with an approx. $3.75 - 4.5/mt gain along the curve. However, this morning markets are trading slightly lower.

High premiums for prompt deliveries.

380 cst $590
180 cst $600
MGO $850

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: $ 596
(1.0 %):$ 660
MGO 0.1%S: $870