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Technical indicators: bearish

This morning, oil prices declined on speculative selling, tracking weakening global economic outlook and US debt concerns. A possible US default if President Barack Obama and lawmakers should fail to reach a deal on the country’s debt ceiling.

Oil prices edged higher Thursday morning, testing first temporary resistances. According to market participants, sentiment throughout the complex was rather nervous but without any clear direction. Given better-than-expected US employment and pending home sales data and strengthening stock markets, oil futures were slightly lifted, reaching their intra-day highs at about 6 p.m. . As in the previous days, investors seized this steady tendency, however, for some profit taking. Without any solution regarding the US ' debt woes there is still little potential, be it downward or upward. In all, oil futures settled slightly higher, also because downward potential was limited by the tropical storm Don, which headed near the US coast.

ICE gasoil for August delivery settled at 979.00 dollars on Thursday. This was 4.50 dollars above Wednesday's settlement. With some 82,500 contracts, the traded volume was far above average

Whereas the stochastic the stochastic does not give any impetus to the markets this morning for Gasoil, the indicator is still bearish for WTI and Brent. Analysts still consider the situation neutral, however, seeing potential upwards as well as downwards within the range. The impact of technical impetus will remain rather small, as long as futures stay within their tendency sideways. Only if they transgress their range, technical impetus will be able to give direction to futures again. The first support for the WTI crude is seen at 96.75 dollars, its first resistance at 97.40 dollars. The Brent's first resistance is seen at 118.50 dollars, its first support is at 117.15 dollars.

U.S.

Nymex Access gaining: Oil futures only marginally changed during electronic morning trade. The volume traded at NYMEX is slightly below average. Market participants look ahead to the opening of the European markets, news regarding the US debt crisis and to US economic data regarding the GDP of the 2nd quarter to be published in the afternoon.

Houston (ex-wharf indications 28-7)

380 cst $653
180 cst $684
MDO $1018

New Orleans (ex wharf indications 28-7)

380 cst $656
180 cst $687
MDO $1022

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

Crude is bearish still, losing with WTI -$0.66. Singapore paper is reacting to Yesterday's bearishness with -$5.30 for 180cst and -$5.00 for 380cst for Aug, and for Sep 180 cst -$5.30 and -$5.30 for 180cst with MGO Aug contracts at -$0.81 and for Sep at -$0.83. The cargo market is reflecting the bearish sentiment turn with 180cst -$1.53, 380cst -$0.13 and MGO -$0.20.

The Singapore market currently looks well supplied while demand is affected by high prices. Market is also looking to be tighter forward as recent lack of avails seen in Fujairah has been attracting arbitrages volumes away from Singapore . The delivered premiums were at around $6.5/mt above cargo prices yesterday. Bunker swaps lost a little during the day. Prices were stronger at the back of the curve compared to the August papers. Rotterdam barges were slightly stronger than Singapore papers bringing East/West below $30 at the front of the curve. Both markets are trading slightly lower this morning.

High premiums for prompt deliveries.

380 cst $674
180 cst $684
MDO $968

Fujairah (delivered indications 29-7)

380 cst $694
180 cst $727
MDO $1085

Rotterdam

Yesterday in the MOC hsfo was traded between 658.50-663 usd and lsfo between 688-690 usd.

Indications for delivered bunkers:

380cst : $ 661
(1.0 %) :$ 697
180cst: $ 685
(1.0 %):$ 727
MGO 0.1%S: $ 981