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Oil prices are little changed this morning in quiet trading. However, the overall tone on markets is bullish still for on news Saudi Arabia appears to be reducing output. Traders are also following news from China. This morning the Shanghai stock market fell to a three year low and there are growing hopes that China will announce a stimulus program next Wednesday when the Chinese cabinet holds its midyear economic conference.

Oil prices presented themselves very volatile on Friday after mixed signals from the IEA, AIE and OPEC energy outlooks and the US petroleum inventories, consolidating above 84.00 dollars (WTI) and 97.70 dollars (brent). News that the US have imposed fresh sanctions on Iran then supported the oil complex at noon and first short-term resistance lines were breached. Despite some profit taking during the session in New York, market sentiment remained rather bullish, pushing brent to a 1.5 months high at 103.44 dollars in late trading. Comments of Goldman Sachs who sees the euro at 1.40 dollars within a year and hopes on more stimulus measures of the US Federal Reserve boosted the euro and in its wake the oil complex and so oil prices settled higher in London and New York.

ICE Gasoil contract for August delivery settled at 879.75 dollars on Friday. This was 13.75 dollars above Thursday's settlement. With some 74,400 contracts the traded volume was above average.

The U.A.E. started operating “Adcop” a new oil pipeline that bypasses the Strait of Hormuz started its exports Sunday, and the first cargo is heading to a refinery in Pakistan. The pipeline, which can transport 1.5 million barrels a day of crude, is expected to have a regular flow of oil by August and will enable Abu Dhabi, the largest United Arab Emirates sheikdom, to export as much as 70% of its crude from Fujairah, located outside the Persian Gulf on the Gulf of Oman, where tankers will be able to pick up the oil instead of sailing into the Persian Gulf via the Strait of Hormuz.

The Stochastic indicator remains slightly bullish at ICE and NYMEX charts this morning but is losing its bullish influence as its buying signal was triggered days ago and its two lines are converging. Friday's upward correction has opened more upside to prices but also raises the probability of profit taking. There is no clear trend to be observed this morning so technical analysts are mostly neutral.

U.S.

Nymex access losing: Oil futures lost ground in Asian trading but trade in a narrow range on Globex electronic trading platform this morning as traders are looking for direction. The traded volume is little above average. Market players eye equities and forex markets today as well as a few economic indicators.

Houston (ex-wharf indications 13-7)

380cst $585
180cst $615
MGO $935

New Orleans (ex-wharf indications 13-7)

380cst $585
180cst $615
MGO $958

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

Crude is slowing, but gaining still with WTI +$0.42. Singapore paper is also firming with +$2.5 for 180cst and +$2.30 for 380cst for Jul, and for Aug 180 cst +$2.75 and 380cst +$2.75 with MGO contracts Jul +$0.62 and Aug +$0.87. The cargo market is mixed with 180cst +$9.23, 380cst +$8.18 and MGO +$1.08.

The Singapore fuel oil market prices rose by more than $8.0 during the local Platts window last Friday tracking the crude. The delivered bunker premium slipped to approx. $8.0/mt above cargo prices on firm crude prices were after the window. Bunker fuel swaps finished the week with a gain as well. Prices grew by approx. $12.75/mt for 180 cst Cargo FOB papers. This resulted in the forward curve lifting higher without major changes of its structure. Markets are trading higher this morning though the markets remain rather thin.

High premiums for prompt deliveries.

380 cst $600
180 cst $613
MGO $860

ARA (Amsterdam - Rotterdam - Antwerp)

Both hsfo and lsfo prices closed the week on a bullish note, tracking Brent. Continuing loading delays, cutter stock shortages and arbitrage loadings reported. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 585
(1.0 %) :$ 636
180cst: $ 610
(1.0 %):$ 662
MGO 0.1%S: $875