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During the course of the morning, oil prices have slightly retreated breaching first supports at 926.00 dollars (G.Oil) resp. 107.25 dollars (Brent). According to traders, this is a phase of consolidation ahead of the weekend and after the sharp increase in prices during the past seven days. Investors thus have reduced some of their long positions. Currently oil futures at ICE are testing their second supports. There has not been any selling signal for the Brent so far, whereas analysts highlight the overbought situation that is likely to prompt investors to take some profits. As to the WTI crude, profit taking remained limited as the August contract will expire this evening and is thus less actively traded. Market players already focus on the contracts with a later delivery date. The fundamental situation remains bullish even though there are currently no news regarding Syria and in the Persian Gulf.

As the technical and the fundamental situation were bullish, oil futures already tested their upward potential on Thursday morning. Resistance lines only briefly capped gains. In the course of the day, many of them were successively breached. US economic data fell short of expectations whereas they did not have any significant impact on oil markets. Oil futures have been pushed to 2-month highs by hopes on further measures of monetary easing and particularly by the tensions between Israel and Iran, as well as by the intense combats in Syria. Only in late trade buying pressure ebbed near the resistances at 92.80 dollars (WTI), at 108.00 dollars (Brent) and 930.25 dollars (G.Oil).

ICE Gasoil contract for August delivery settled at 925.75 dollars on Thursday. This was 19.50 dollars above Wednesday's settlement. With some 65,700 contracts the traded volume was above average.

The stochastic indicator already gives a weak selling signal at the WTI charts whereas it is still considered neutral for the Brent and the G.Oil. Markets are significantly overbought favoring a downward reaction. After oil prices at ICE and NYMEX have climbed for seven days in a row, a counter reaction is overdue, analysts say. The fact that it is Friday, usually a day on which investors consolidate their riskier positions, and that there is a selling signal for the WTI indicates a slight downward correction. On the opposite, however, the stochastic indicator at the Brent and the Gasoil charts does not give any selling signals yet and the uptrend proved stable in the past week. If there are selling signals for the Brent and the Gasoil as well in the course of the day, the Brent's short-term support at 105.50 dollars might be tested.

U.S.

Nymex access gaining: Oil futures have hardly changed in Asian trading and on Globex electronic trading platform this morning. After yesterday's rise, oil prices have consolidated on a high level. The traded volume is on average. Market players now eye equities and forex markets as well as news on the tensions in the Middle East. There are but few economic indicators today.

Houston (ex-wharf indications 19-7)

380cst $623
180cst $648
MGO $990
New Orleans (ex-wharf indications 19-7)

380cst $625
180cst $650
MGO $995

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

Crude is bullish still with WTI +$1.28. Singapore paper is slowing with +$7.35 for 180cst and +$6.95 for 380cst for Aug, and for Sep 180 cst +$6.45 and 380cst +$6.95 with MGO contracts Aug +$0.70 and Sep +$0.71. The cargo market responding to the bulllish sentiment, gaining with 180cst +$11.64, 380cst +$12.29 and MGO +$2.71.

The Singapore fuel oil market prices inched up gaining approx. $0.5/mt at the Platts window. The Asian fuel oil cracks widened again yesterday. The incoming July cargo volume is estimated to equal 3.0 to 3.5 million mt while August arbitrage is calculated at 2.5 - 3.0 million mt. The delivered bunker premiums softened to approx. $7.50/mt above cargo prices yesterday. Bunker fuel swaps were strongly up yesterday with a slightly different dynamic in Europe and Asia. Front month was assessed up by almost $12/mt. Forward prices were even stronger gaining a few cents more than August papers. Markets continue moving up this morning.

High premiums for prompt deliveries.

380 cst $635
180 cst $646
MGO $910

Fujairah (delivered indications 20-7)

380cst $640
180cst $660
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

Both hsfo and lsfo are still bullish, 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 : $ 620
(1.0 %) :$ 671
180cst: $ 646
(1.0 %):$ 710
MGO 0.1%S: $916