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Oil futures dropped in early European trading on technical selling after first support lines were breached. An ailing euro and the weak performance of European equity markets apply additional pressure. Shares are down sharply on the Milan stock exchange with trading in some banks and other issues halted because of excessive declines as fears over an escalation in Europe's debt crisis gripped markets once again. ICE gasoil falls below 900.00 dollars and brent loses more than 3 dollars.

Oil prices in London and New York eased on Friday morning, breaching first support lines early in the session. The supports at 106.50 dollars (brent), 919.75 dollars (G.Oil) and 91.30 dollars (WTI) initially proved strong but were also breached in the afternoon when the decline of the euro and the weak performance of equity markets entailed some profit taking. After last week's strong price increase (the brent climbed more than 10 percent), the downward correction was expected, the more as the Stochastic oscillator at the Brent chart gave a selling signal. During the session in New York oil prices oscillated around the support lines in a tight range as more supports proved strong (91,00 dollars WTI and 105,95 dollars Brent). In Asian trading oil fell as traders got rid of their long positions in the wake of the ailing euro and faltering equity markets.

ICE Gasoil contract for August delivery settled at 919.50 dollars on Friday. This was 6.25 dollars below Thursday's settlement. With some 62,800 contracts the traded volume was above average.

The Stochastic indicator at ICE and NYMEX charts is giving markets a selling signal at the overbought level after its two lines have crossed, encouraging some technical profit taking. Should the RSI breach the 70% line an additional selling signal will be triggered. So technical analysts see oil prices continue to decline today within their medium-term uptrends.

U.S.

Nymex access losing: Oil futures are losing ground in Asian trading and on Globex electronic trading platform this morning on technical selling a weak performance of European equity markets. The traded volume is above average. Due to a lack of important economic indicators on the agenda, market players will eye equities and forex markets today.

Houston (ex-wharf indications 20-7)

380cst $623
180cst $648
MGO $990

New Orleans (ex-wharf indications 20-7)

380cst $623
180cst $648
MGO $995

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

Crude is dropping like stone with WTI -$3.70. Singapore paper is fully responding to the latest turn with -$22.45 for 180cst and -$22.45 for 380cst for Aug, and for Sep 180 cst -$22.25 and 380cst -$22.05 with MGO contracts Aug -$3.24 and Sep -$3.24. The cargo market is slowing but not yet responding, with 180cst +$7.66, 380cst +$6.86 and MGO +$0.67.

In the Singapore marine fuel market, the bunker differential, or price spread between ex-wharf marine fuel prices and fuel oil cargo values, fell to its lowest in one week. Demand for marine fuel has slowed as prices rise due to high underlying crude prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $615
180 cst $630
MGO $890

ARA (Amsterdam - Rotterdam - Antwerp)

HSFO and LSFO levels eased on the slipping Euro and Gree5/Spanish worries. Continuing loading delays and cutter stock shortages result in high premiums for prompt suppliers however, if any avails at al. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 596
(1.0 %) :$ 645
180cst: $ 621
(1.0 %):$ 687
MGO 0.1%S: $891