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The price of oil fell Wednesday as investors waited for a report on U.S. crude stocks and the Federal Reserve's latest views on the U.S. economy. Benchmark crude for July delivery was down 62 cents to $95.56 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The June contract fell 55 cents to settle at $96.16 a barrel on Tuesday.

Oil markets already showed a softer tendency on Tuesday morning breaching first short-term supports. Technically, the formation of a double-top caused some selling pressure for the Brent and the WTI, as these contracts failed to renewedly reach their resistances at 105.40 dollars, resp. 97.15 dollars. Market players were particularly nervous ahead of Ben Bernanke's speech in front of the Congress and ahead of the FOMC's meeting minutes cutting the long positions they accumulated over the past week. In the second half of the day, markets were far more volatile but kept track of their losses until late at night and so oil futures settled marking new lows. In the evening, many investors understood that according to his remarks, Fed member James Bullard did not prefer a near exit from the US central banks expansive monetary policy. This only briefly bolstered oil prices around 5.30 p.m.. The API's data on US oil inventories, which were released at 10.30 p.m., were bearish on the bottom line but have shown no larger impact on the level of oil prices so far.

ICE Gasoil contract for June delivery settled at 875.75 USD on Tuesday. This was 7.25 USD below Monday's settlement. With some 51,900 deals, the traded volume was about on average.

The double-top that has shown yesterday at the Brent and the WTI chart has proved strong and might prompt investors to take some profits. Moreover, the stochastic indicator's lines have crossed at ICE and NYMEX charts, giving a selling signal. The technical constellation thus keeps pointing to more profit taking which is why we take a bearish technical stance this morning. However, we want to stress the possible impact of fundamental factors like the FOMC's meeting minutes and Ben Bernanke's speech.

U.S.

Nymex bearish: Oil futures have consolidated in Asian trading this morning. Market fundamentals, that have become rather bearish after the API's oil inventories data, and the bearish technical constellation have meanwhile prompted investors to take some profits, however. Asian stock markets have slightly supported oil markets (Nikkei 225) but currently this cannot prevent prices from retreating. Trade volume at NYMEX is slightly below average for this time of day. Investors are now waiting for the performance of European markets, for fresh signals from forex trading and from the economic data that are on the agenda today. Furthermore they will closely watch the DOE's data.

API: Crude oil + 0,5 ; distillates +0,5 ; gasoline + 3,0 million barrels vs previous week
DOE: Due out tonight
Survey: Crude oil + 0,0 ; distillates -0,3 ; gasoline -0,1 million barrels vs previous week

Houston (ex-wharf indications 21-05 )
380cst $586
180cst $650
MGO $973

New Orleans (ex-wharf indications 21-05)
380cst $595
180cst $657
MGO $975

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

Crude is down with -$1.05. The paper market is following, dropping with June 180cst -$3.00 and for 380cst -$3.50, and July contracts with 180cst -$3.45, 380st -$3.45. The cargo market is mixed, with 180cst +$1.08, and 380cst -$0.06 and MGO +$0.31.

The Singapore fuel oil markets started the week marginally up during the Platts window yesterday. Traders and shipping brokers surveyed estimate that about 5.92 million mt of fuel oil will arrive in the region this month, up 9.7% from April. Market demand was said to be slow yesterday. The delivered bunker premiums fell to around $4.0 above cargo prices. This morning both markets are trading slightly lower.

High premiums for prompt deliveries.
380 cst $599
180 cst $608
MGO $870

Fujairah (delivered indications 22-05)

380cst $612
180cst $679
MGO $1010

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $583
(1.0 %) :$ 602
180cst: $ 632
(1.0 %):$ 613
MGO 0.1%S: $ 854