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WTI oil rose on this morning as investors awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.

Fostered by positive economic data out of China, Tuesday morning, oil futures at ICE and NYMEX were able to make up for some of the losses they had marked on the day before edging higher again. Near their second resistances at 916.25 USD Gasoil and at 112.80 USD, respectively, upward potential was limited, however. Economic data out of the Eurozone and the USA released in the course of the day missed expectations preventing further gains. Analysts don't expect that oil prices will rise significantly anyway, unless the situation in Iraq and Ukraine considerably escalates. There were but few fundamental news yesterday which is why traders stayed on the sidelines and the traded volume remained low. In the course of the evening, profit taking predominated sending Brent and WTI below more short-term supports. Gasoil settled nearly unchanged, however. In late trade, the API released its report on US oil inventories which provided rather bullish cues fostering oil markets in early morning trade today.

ICE Gasoil contract for July delivery settled at 914.00 USD on Tuesday, this is -1.00 USD below Monday's settlement. With some 40,800 deals, the traded volume (front month) was below average.

This morning, the technical indicators at ICE and NYMEX charts are in oversold territory favoring technical upward moves. At the Gasoil chart the lines of the stochastic indicator have already crossed giving a buying signal. At the Brent and the WTI chart, the stochastic indicator is also pointing to a buying signal but its lines haven't crossed clearly enough yet, to trigger such a signal. The existing downtrends are still intact providing some more slack down before oil futures might break above these trends. Given the buying signal of the stochastic indicator at the Gasoil chart, we assess the technical constellation as neutral to bullish this morning. If the indicator provides additional buying signals at the Brent and the WTI chart and if quotations break above their trend channels, the technical situation would turn clearly bullish.

U.S.

Nymex below avarage: After yesterday evening's lows oil futures are edging higher this morning supported by the API's slightly bullish data on US oil inventories. The traded volume at NYMEX is below average at this time of day. Market participants will closely watch stock and forex markets and the release of some economic indicators today. They also keep an eye the developments in Iraq and Ukraine and are waiting for the DOE's report on US oil inventories, due at 4.30 p.m. this afternoon.

API: Crude oil -0.9; Distillates +4.4; Gasoline -0.4 million barrels vs previous week.
Forecasts: Crude oil -2.5; Distillates +1.0; Gasoline +0.5 million barrels vs previous week.

Houston (ex-wharf indications 2-7)
380cst $611
180cst $683
MGO $992

New Orleans (ex-wharf indications 2-7)
380cst $619
180cst $662
MGO $997

Singapore (delivered indications 2-7)

WTI is down with -$0.54. Singapore paper is down with -$2.75 for 180cst and -$3.00 for 380cst for Jul, and for Aug 180 cst -$1.80 and 380cst with -$2.50 with MGO contracts being bullish in Jul with +$0.15 and in Aug with +$0.20. The cargo market is bearish with 180cst -$1.74, 380cst with -$1.04 and MGO is bullish with -$0.30.

The Singapore fuel oil prices lost nearly $2.0 during the Asian Platts window yesterday. The delivered bunker premiums rebounded to around +$5.0 above cargo prices.

380cst $610
180cst $628
MGO $912

Fujairah (delivered indications 2-7)

380cst $618
180cst $646
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

380cst : $587
(1.0 %) : $622
180cst: $627
MGO 0.1%S: $889