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Oil prices slip after they edged higher this morning on hopes the ECB will take decision action this week when the ECB board meets on Thursday. Markets are becoming more hopeful of ECB action following a series of statement from Eurozone leaders that the ECB, along with the core nations will do everything to save the Euro.

Oil futures started the day higher in London in New York, extending the previous days' gains on a stronger euro vs the dollar and speculation on more monetary easing measures to be decided on this week. First short-term resistance lines were breached before noon but prices rose only temporarily as market participants took some profit ahead of the release of a few economic indicators in the afternoon. These were about in line with economists' expectations and therefore not apt to give direction. Exchange was somewhat muted in a market lacking momentum but supported by the bullish technical constellation and the fundamentals. The major bullish factor that supported oil futures was the speculation on more monetary stimulus which made oil prices settle higher in London and New York.

ICE Gasoil contract for August delivery settled at 910.75 dollars on Friday This was 5.25 dollars above Thursday's settlement. With some 44,100 contracts the traded volume was below average.

The Stochastic indicator is still bullish today at all charts. So technical analysts forecast the bullish tendency to continue within the steep short-term uptrend that is supported by euro strength. More tests of the upside potential seen but operators will be cautious ahead of Fed and ECB meetings later in the week.

U.S.

Nymex access losing: Oil futures diverged in Asian trading and on Globex electronic trading platform this morning, trading lower in London and gaining ground in New York as the euro lacks momentum and on speculation of more monetary easing measures to bolster the economy. The traded volume is above average. As there are only a couple of economic indicators on the agenda today, operators eye equities and forex markets as well as the meetings of the US Federal Reserve and the European Central Bank later in the week.

Houston (ex-wharf indications 27-7)

380cst $616
180cst $644
MGO $960

New Orleans (ex-wharf indications 27-7)

380cst $653
180cst $663
MGO $970

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

Crude is slowing with WTI +$0.32. Singapore paper is mirroring crude, slowing with +$1.95 for 180cst and +$1.00 for 380cst for Aug, and for Sep 180 cst +$1.35 and 380cst +$1.00 with MGO contracts Aug +$0.42 and Sep +$0.52. The cargo market is more bullish with 180cst +$8.90, 380cst +$8.92 and MGO +$1.94.

The Singapore fuel oil market prices rose more than $5.5 during the morning window yesterday tracking crude movements. The latest Singapore heavy residual inventory reported a slight build of 0.23 mbbl to 17.61 mbbl. The delivered bunker premiums were around $7.0 above cargo prices yesterday. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $630
180 cst $640
MGO $900

ARA (Amsterdam - Rotterdam - Antwerp)

In the ARA, both hsfo and lsfo levels are still firm, tracking crudes and stock markets. Not much demand seen, with loading delays and short cutter stocks underpinning the markets. High premiums are charged for prompt enquiries.

Rotterdam

Indications for delivered bunkers:

380cst : $ 610
(1.0 %) :$ 654
180cst: $ 634
(1.0 %):$ 695
MGO 0.1%S: $900