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Crude oil prices gained in early Asia this morning as U.S. industry data on oil inventories showed solid draw downs in refined products and investors awaited further word on a possible deal between Western powers and Iran on its nuclear program.

Market players at ICE and NYMEX tend to test the upside on Tuesday morning due to bearish fundamentals and a slightly bearish technical situation. Expectations concerning fresh increases in US crude oil stocks and ongoing nuclear negotiations in Lausanne and a corresponding possible agreement between the Iran and the group 5+1 weighed on oil futures on Tuesday. Experts count on an increase in the oversupply at the crude oil market in case of an agreement. Therefore, traders avoided long positions engaging in short once. Due to the fact that negotiations continued during the night and as they still didn't announce any agreement until midnight, some market players liquidated their short positions again when they left trading. The short covering triggered some jumps in prices but the tendency at the oil market stayed. Therefore, oil futures at ICE and NYMEX finally settled lower on Tuesday evening. The API published its US oil inventory report on Tuesday evening. These figures hardly influenced oil prices due to the fact that market players especially concentrated on nuclear negotiations.

ICE Gasoil contract for April delivery settled at 526.50 USD on Tuesday, this is -1.00 USD below Monday's settlement. With some 45,300 deals the traded volume (front month) was below average.

The stochastic indicator's selling signals lose their influence and even the RSI stays neutral without being able to trigger any important signal. WTI already breached its Tuesday's low indicating further downward potential while Brent and Gasoil still test these marks. If they also breach them, technical selling pressure would increase. We consider the technical constellation as neutral to bearish this morning due to WTI's breach. Tuesday's lows at the Brent and the Gasoil chart are short-term key supports.

U.S.

Nymex far above average: Futures hardly react on the comments of the Russian foreign minister but already test their downside. The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open, for news concerning Yemen, for details concerning the nuclear framework agreement and for economic indicators that are on the agenda today. They are also focusing on the official US oil inventory data as per DOE (4.30 pm).

Forecast: Crude oil +4.6; Distillates -0.3; Gasoline -0.9 million barrels vs previous week.
API: Crude oil +5.2; Distillates ±0.0; Gasoline -4.1 million barrels vs previous week.

Houston (ex-wharf indications 1-4)
380cst $304
180cst $472
MGO $582

New Orleans (ex-wharf indications 1-4)
380cst $312
180cst $379
MGO $595

Singapore (delivered indications 1-4)

WTI is losing with -$0.21. Singapore paper is bullish with ±$0.0 for 180cst with +$0.90 for 380cst for Apr, and for May 180 cst +$0.15 and 380cst with +$0.10 with MGO contracts Apr gaining with +$0.05 and in May with +$0.01. The cargo market is bearish with 180cst -$6.39, 380cst with -$6.22 and MGO bearish with -$1.04.

380cst $310
180cst $329
MGO $523

Fujairah (delivered indications 1-4)

380cst $315
180cst $336
MGO $731

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $293
MGO 0.1%S: $513