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Oil fell to around $65 a barrel on Tuesday, pressured by the possibility that U.S. shale oil producers could increase drilling activity and by a stronger dollar.

Oil futures at ICE and NYMEX considerably increased in the course of the last week after the release of US oil inventory data. Buying pressure wasn't strong enough before the long weekend for letting oil futures breach the resistances of their fresh downward tendencies. Therefore, market players tend to profit taking from their long positions. The US dollar considerably increased after the release of the US consumer price index and jumped upwards. This is why in dollar-negotiated oil futures got more expensive for traders outside the United States accelerating oil futures' downward movement. On Whit Monday there was also the Memorial Day in the United States and Spring Break Holiday in Great Britain. Therefore trading volume at ICE and NYMEX stayed rather weak and considerably below its normal level on Monday. The Baker Hughes report which was released on Friday evening weighed on oil futures at ICE and NYMEX on Monday morning. But oil futures regained their losses in late Monday trading. Therefore, oil futures hardly changed on Monday and stayed within their downward tendencies.

ICE Gasoil contract for June delivery settled at 606.00 USD on Monday, this is +6.00 USD above Friday's settlement. With some 10,500 deals the traded volume (front month) was far below average.

Neither the stochastic indicator nor the RSI triggered any fresh signals this morning. The 7 day moving average and the 21 day moving average at the Brent and the WTI chart already crossed in the course of the last week generating a selling signal. This signal has been confirmed on Monday at the Gasoil chart. Therefore, the moving averages stay bearish. Besides, the downward tendency stays intact limiting upward margins so far and encouraging downward tendencies. Therefore, we consider the technical constellation as slightly bearish this morning. The stochastic indicator might trigger fresh signals in the course of the day. The indicator's lines at the Brent, the WTI and the Gasoil chart already touch and would generate a clear selling signal if they cross sustainably. This fact would increase selling pressure considerably and the technical constellation might become completely bearish in the course of the day.

U.S.

Nymex above average: Oil futures consolidate in a rather narrow range this morning after they returned from their Monday's highs tonight. 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 and for economic indicators that are on the agenda today.

Houston (ex-wharf indications 26-5)
380cst $342
180cst $469
MGO $659

New Orleans (ex-wharf indications 26-5)
380cst $353
180cst $405
MGO $601

Singapore (delivered indications 26-5)

WTI is gaining with +$0.20. Singapore paper is gaining with +$0.50 for 180cst with +$2.45 for 380cst for Jun, and for Jul 180 cst +$1.35 and 380cst with +$2.10 with MGO contracts Jun gaining with +$0.42 and in Jul with +$0.43. The cargo market is bullish with 180cst +$13.22, 380cst with +$11.77 and MGO with +$1.33.

380cst $374
180cst $391
MGO $576

Fujairah (delivered indications 26-5)

380cst $377
180cst $387
MGO $735

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $345
MGO 0.1%S: $602