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Crude oil futures attempted to rebound from the previous session's steep declines 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 started weak on Tuesday morning after they rather consolidated on Whit Monday. The Baker Hughes report was a fundamental factor which weighed on oil futures while the strong dollar and the slightly bearish technical constellation were more important factors yesterday. The bearish technical constellation indicated already in the early morning news to support downward movements at the oil market. The strong dollar encouraged this development in the course of the afternoon. Selling pressure considerably increased around midday due to the crossing of the stochastic indicator's lines. This selling pressure indicated technical downward movements in the afternoon. The breach of the supports at 64.90 USD Brent and 59.00 USD WTI in combination with the technical constellation which changed to be completely bearish in the course of the day triggered a technical selling wave. Brent and Gasoil dropped to 4-week-lows due to automatically triggered stop loss orders. Therefore, the fresh downward trends were confirmed again and stayed intact. The euro stayed weak as well but oil futures' losses predominated the market situation yesterday. Selling pressure decreased in the course of the night when trading volume decreased. Some traders covered their short positions during the night due to the price drop.

ICE Gasoil contract for June delivery settled at 585.25 USD on Tuesday, this is -20.75 USD below Monday's settlement. With some 40,400 deals the traded volume (front month) was below average.

The stochastic indicator confirmed the selling signal yesterday which was generated by the crossing of the moving averages. Therefore, we consider the technical constellation as bearish this morning. Most of the bearish signals have already been included in the strong downward movement and the downward margins which are located within the downward trends are already rather exhausted. Therefore, the technical constellation still indicates downward tests but technical selling pressure slightly decreased compared to yesterday and offers the possibility for short coverings.

U.S.

Nymex above average: Oil futures consolidate in a rather narrow range this morning even though some traders already covered their short positions during the night due to oil futures' drop on Tuesday. 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 27-5)
380cst $339
180cst $469
MGO $651

New Orleans (ex-wharf indications 27-5)
380cst $349
180cst $405
MGO $601

Singapore (delivered indications 27-5)

WTI is losing with -$0.58. Singapore paper is losing with -$1.25 for 180cst with -$0.75 for 380cst for Jun, and for Jul 180 cst -$1.10 and 380cst with -$0.95 with MGO contracts Jun losing with -$0.88 and in Jul with -$0.90. The cargo market is bullish with 180cst +$1.52, 380cst with +$1.19 and MGO with +$0.42.

380cst $371
180cst $389
MGO $572

Fujairah (delivered indications 27-5)

380cst $381
180cst $397
MGO $734

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $338
MGO 0.1%S: $572