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Crude oil futures declined this morning, as market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer

Oil futures at ICE and NYMEX increased on Monday morning. Geopolitical tensions in the Middle East where the Yemen conflict continues after the end of the ceasefire and where the IS captured the city Ramadi pushed oil futures upwards. But gains stayed limited due to the rather bearish overall situation. Oil futures lost their gains in the course of the day due to the stronger dollar. Besides, the Iranian deputy oil minister announced that he counts on an unchanged OPEC production quota after the meeting in June. The figures of JODI (Joint Oil Data Initiative) showed that Saudi oil exports reached their highest level since November 2005 in March and analysts at Goldman Sachs count on a low price level in the long term. Due to this news, bearish factors predominates the geopolitical risks. Therefore, oil futures considerably eased in the course of the afternoon. Genscape indicated yesterday evening that considerable decreases in stocks in Cushing are expected but the slight upward movement at the WTI chart stayed rather limited in late trading and futures finally settled lower near their Monday's lows.

ICE Gasoil contract for June delivery settled at 608.75 USD on Monday, this is -2.25 USD below Friday's settlement. With some 63,000 deals the traded volume (front month) was above average.

Brent dropped below its 21 day moving average triggering a slight selling signal. The stochastic indicator's lines at the Brent and the Gasoil chart crossed triggering also a selling signal.. Oil futures at ICE already test their Monday's lows while those at NYMEX are still strong. If futures sustainably breach their Monday's lows, a technical selling wave might be triggered and even WTI might test its 21 day moving average support. As the technical constellation indicates downward tests, we consider the technical constellation as neutral to bearish this morning.

U.S.

Nymex above average: Oil futures at ICE are already testing their Monday's lows while the lows at NYMEX are still strong. The traded volume at NYMEX is slightly below average at this time of the day. Market players are waiting for the European financial and the forex markets to open and for economic indicators that are on the agenda today, as well as for the US oil inventory data as per API which will be released tonight at 10.30 pm.

Houston (ex-wharf indications 19-5)
380cst $356
180cst $469
MGO $662

New Orleans (ex-wharf indications 19-5)
380cst $363
180cst $411
MGO $622

Singapore (delivered indications 19-5)

WTI is losing with -$1.77. Singapore paper is losing with -$15.05 for 180cst with -$14.35 for 380cst for Jun, and for Jul 180 cst -$15.30 and 380cst with -$14.65 with MGO contracts Jun losing with -$2.10 and in Jul with -$2.04. The cargo market is bullish with 180cst +$1.29, 380cst with +$3.79 and MGO with +$0.24.

380cst $373
180cst $398
MGO $596

Fujairah (delivered indications 19-5)

380cst $386
180cst $412
MGO $737

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $342
MGO 0.1%S: $583