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WTI oil futures pushed higher 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.

The fundamental and technical bearish constellation indicated downward tests in the early Monday morning at the oil market. Short covering caused a temporary upward movement but finally bearish forces predominated at the oil market. Technical selling pressure increased as expected by the breach of the 21 day moving average at the WTI chart. Therefore, oil futures at ICE and NYMEX considerably decreased in the early afternoon. Especially the development at NYMEX limited oil futures' downward movements as the risk of a tropical storm in the Gulf of Mexico triggered short covering. Even currency trading caused buying interest at the oil market. The euro increased in late trading due to disappointing US economic indicators which were released in the course of the day. Therefore, in dollar-negotiated oil futures at ICE and NYMEX got less expensive for traders outside the United States. Oil futures finally settled lower, but not as low as market players expected in the course of the day due to the countermovement in the late afternoon.

ICE Gasoil contract for July delivery settled at 576.00 USD on Monday, this is -9.25 USD below Friday's settlement. With some 65,100 deals the traded volume (front month) was above average.

The lines of the stochastic indicator keep diverging at ICE and NYMEX charts. Besides, it has dropped below its 50 line confirming the bearish character of the stochastic indicator. A buying signal was generated yesterday at the WTI chart by the crossing of the MA 7 and 21. This strengthened bullish signals. The moving averages at the Brent and Gasoil chart could also cross which would trigger a strong confirmation of WTI's buying signal and create a technical upward movement which could push WTI near its 62.00 USD mark and Brent to its 67.00 USD mark. The technical constellation destabilised compared to yesterday and lost its clarity this morning. We consider the technical constellation as neutral this morning as the bearish influence of the stochastic indicator has already been implemented in a downward movement on Monday while the moving averages indicate possible buying signals.

U.S.

Nymex above average: Oil futures at ICE and especially at NYMEX increase due to the tropical storm Bill. The traded volume at NYMEX is far above average at this time of the day. Market participants 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 is to be released tonight at 10.30 pm.

Houston (ex-wharf indications 16-6)
380cst $344
180cst $469
MGO $633

New Orleans (ex-wharf indications 16-6)
380cst $355
180cst $410
MGO $620

Singapore (delivered indications 16-6)

WTI is losing with -$0.32. Singapore paper is up with +$4.50 for 180cst with +$4.25 for 380cst for Jul, and for Aug 180 cst +$3.35 and 380cst with +$2.10 with MGO contracts Jun losing with -$0.33 and in Jul with -$0.31. The cargo market is bearish with 180cst -$5.72, 380cst with -$4.52 and MGO down with -$1.09.

380cst $357
180cst $368
MGO $560

Fujairah (delivered indications 15-6)

380cst $349
180cst $384
MGO $739

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $329
MGO 0.1%S: $553