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Technical indicators: neutral to bearish

Oil prices fell to near USD 98 this morning on US crude demand concerns. Crude oil has retreated from a 30-month high near USD 115 at the beginning of this month.

The euro fell to a seven-week low against the dollar and dropped against 10 of its 16 major counterparts on concern European finance ministers meeting today and tomorrow will fail to quell speculation Greece will have to restructure its debt. The euro dropped to 1.4049 dollars this morning in East-Asia from 1.4119 dollars in New York on Friday.

Oil prices traded higher in electronic trading on Friday as the euro rose against the US dollar after a better-than-expected euro zone GDP, but stayed volatile without a clear direction. After the opening of NYMEX session oil prices shed earlier gains as the dollar recovered strongly as European sovereign debt worries weighed. Oil moves inversely to the dollar for the time being and a stronger greenback typically pressures oil. In late NYMEX session and after-hour trading oil prices recovered in London and New York on news that the Mississippi flood and problems at the North Sea Forties pipeline disrupt oil supply.

ICE Gasoil contract for June delivery settled at 917.25 dollars Friday night. This was 3.75 dollars above Thursday's settlement. Volume with some 75,200 deals well above average.

Neither RSI nor Stochastic indicator are giving any clear signals for the time being and neither is there a trendchannel to be seen on the charts. The trading range is unusually wide for all contracts, a sign of more market volatility. Investors are still looking for direction and therefore eye the foreign exchange market for any hints on the possible development of oil prices. The first support for the WTI crude is seen at 97.00 dollars, the first resistance at 100.00 dollars. The Brent's first resistance is seen at 115.00 dollars, its first support is at 112.50 dollars.

U.S.

Nymex Access losing. Oil prices traded in a narrow range in East Asia and Globex electronic trading this morning, WTI crude dropped as low as 98.26 dollars a barrel, down from Friday's high's as the euro fell on worries that Greece may restructure its sovereign debt. The traded volume is above average.

Houston (ex-wharf indications 13-5)

380 cst $624
180 cst $658
MDO $948

Very tight avails for 180 cst

New Orleans (ex wharf indications 13-5)

380 cst $626
180 cst $661
MDO $951

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

Crude is back on its bearish track, losing with WTI -$2.13 Singapore paper is more cautious with -$4.35 for 180 cst and -$4.50 for 380 cst for Jun, and for Jul 180 cst -$4.35 and 380cst -$4.50 with MGO Jun contracts at -$1.25 and for Jun at -$1.27 The cargo market is yet to react to the latest drops with 180cst +$14.86 380cst +$14.15 and MGO +$1.60.

The Singapore fuel oil markets rose more than $14.00 during the Platts window last Friday as crude strengthened. Brightoil continued its strong buying and provided some support to the market, firming up the Asian fuel oil crack. The bunker delivered premiums remained around $8.50 above cargo prices last Friday. The Singapore market will be closed for a public holiday tomorrow and market reopens on Wednesday. Both markets are trading slightly lower this morning.

High premiums for prompt deliveries.

380 cst $638
180 cst $648
MDO $935

Fujairah (delivered indications 16-5)

380cst: $642
180cst: $664
MGO: $1037

Rotterdam

Indications for delivered bunkers:

380cst: $615
(1.0%): $645
180cst: $642
(1.0%): $676 (very low avails)
MGO 0.1%S: $927