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WTI oil futures edged higher this morning, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.

Oil prices at ICE and NYMEX tended to the upside on Tuesday morning, testing Monday's highs. Even so, the bearish market fundamentals as well as the bearish technical constellation prompted investors to take some profits in the afternoon. The continuously retreating euro/dollar favored the decline. A steadier greenback makes dollar-denominated oil futures more expensive for investors outside the USA, which is why those investors rather tend to take profits. When the euro/dollar stabilised in the course of the afternoon, selling pressure at oil markets waned, too. After a short phase of consolidation oil futures rallied. WTI, which had briefly dropped below its MA21 surged to the upper limit of its trading range near the upper Bollinger Band. There were no fundamental reasons for this rise, which is why analysts presumed that it was caused by speculations on bullish data on US oil inventories. Market players proved right as the API's report showed a sharp draw in crude oil stockpiles. Particularly the data on crude oil inventories in Cushing, Oklahoma, confirmed the bullish bias. At last, oil futures settled with considerable gains remaining near their intra-day highs overnight.

ICE Gasoil contract for July delivery settled at 583.25 USD on Tuesday, this is +13.00 USD above Monday's settlement. With some 72,000 deals the traded volume (front month) was about on average.

Tuesday's slightly bearish technical constellation has meanwhile changed. The stochastic indicator gives a buying signal at ICE as well as at NYMEX charts as its lines have crossed. Since the lines of the indicator also rose above 50%, its bullish bias became even clearer. Oil futures are thus already trading near their resistances, which is limiting the upside. If they break above their resistances, there might be another wave of technical buying. Particularly at the WTI chart a strong resistance has developed between 61.45 USD and 61.80 USD, near the upper Bollinger Band.

U.S.

Nymex below average: After Tuesday's gains oil futures have seen some profit taking but overall prices remain on a high level. 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, for news concerning Greece, for the economic indicators that are on the agenda today, and for the DOE's data on US oil inventories which is to be released this afternoon at 4.30 pm.

Forecast: Crude oil -2.3; Distillates +0.8; Gasoline -0.2 million barrels vs previous week.
API: Crude oil -3.2; Distillates -0.6; Gasoline +0.4 million barrels vs previous week.

Houston (ex-wharf indications 24-6)
380cst $341
180cst $432
MGO $610

New Orleans (ex-wharf indications 24-6)
380cst $352
180cst $403
MGO $595

Singapore (delivered indications 24-6)

WTI is gaining with +$1.36. Singapore paper is up with +$3.35 for 180cst up with +$1.25 for 380cst for Jul, and for Aug 180 cst +$3.60 and 380cst with +$2.75 with MGO contracts Jun gaining with +$1.88 and in Jul with +$1.88. The cargo market is bearish with 180cst -$5.82, 380cst with -$4.53 and MGO down with -$0.97.

380cst $355
180cst $371
MGO $563

Fujairah (delivered indications 24-6)

380cst $345
180cst $371
MGO $733

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $333
MGO 0.1%S: $573