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West Texas Intermediate oil futures declined this morning, as market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

Oil futures at ICE opened higher on Monday, well supported in electronic morning trading, trying to breach their first resistance lines. Upside was limited, however, by Brent's strong resistance at 115.70 dollars. Figures released Monday by the ICE showed that money managers, including hedge funds, increased their net long positions in Brent crude oil futures and options to a record high last achieved in September 2013. As the fighting in Iraq, despite ISIS fighters capturing more territory has not yet led to any production outages in the South, traders took profit from these long positions. This effect was increased after the opening of NYMEX session. After Brent and gasoil had breached their first support lines, a wave of technically driven selling orders sent Brent as low as its 114.00 dollar support that proved strong. As the futures did not recover from their losses, they finished considerably lower at London and New York.
br> ICE Gasoil contract for July delivery settled at 928.75 USD on Monday, this is 6.50 USD below Friday's settlement. With some 41,700 deals, the traded volume (front month) was below average.
br> The Stochastic indicator at the ICE charts is still somewhat bearish this morning. Its selling signal having been triggered on Friday the downward potential should already have been absorbed. At the WTI chart the indicator has changed direction after Monday's buying signal and is thus bearish at the chart today. The Stochastic thus favours more downward correction but a clear selling signal has not yet been triggered. The RSI could give such a signal should it breach the 70 line. In the absence of fresh signals we consider the technical constellation as only slightly bearish this morning.

U.S.

Nymex above avarage: Oil futures at ICE and NYMEX are consolidating on a low level this morning in Asia and in Globex computer trading. The traded volume at NYMEX is well above average at this time of day. This Monday investors anticipate the opening of stock and forex markets and will closely watch the development of the situation in Iraq and Ukraine. Today there is a string of economic indicators on the agenda, mainly in the U.S.

Houston (ex-wharf indications 24-6)
380cst $614
180cst $724
MGO $991

New Orleans (ex-wharf indications 24-6)
380cst $622
180cst $669
MGO $1002

Singapore (delivered indications 24-6)

WTI is down with -$1.61. Singapore paper is down with -$5.25 for 180cst and -$6.55 for 380cst for Jul, and for Aug 180 cst -$4.60 and 380cst with -$4.90 with MGO contracts being bearish in Jul with -$1.20 and in Aug with -$1.23. The cargo market is bullish with 180cst +$1.92, 380cst with +$2.13 and MGO with +$0.50.

The Singapore fuel oil prices started the week gaining another $2.0 during the Asian Platts window tracking the strength in crude prices. The delivered bunker premiums were ranging between $3.0 and $4.5 above cargo prices.

380cst $625
180cst $640
MGO $938

Fujairah (delivered indications 24-6)

380cst $630
180cst $650
MGO $990

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $604
(1.0 %) : $637
180cst: $644
MGO 0.1%S: $904