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Crude oil futures swung between small gains and losses this morning, as investors continued to monitor developments surrounding talks between Greece and its international creditors, amid fading hopes for a deal.

Oil prices at ICE and NYMEX tended to the upside on Wednesday morning fostered by the technical buying signals of the stochastic indicator. Brent and WTI headed for their first key-resistances at 65.00 USD and 61.50 USD, respectively. However, these resistances proved strong. In the early afternoon, investors took some profits in a rather calm trade. Ahead of the release of the DOE's report on US oil inventories, market players avoided larger short-positions, nonetheless, as the API's data had provided bullish cues Tuesday night. The DOE's data contained bullish as well as bearish factors. In late-evening trade, the bearish factors prevailed. Taking a closer look at the data, it contained crucial factors that took investors by surprise, leading to expect that market fundamentals for the (US) oil market remain bearish. Even so, it took until after 5.30 p.m. - the time of settlement for ICE Gasoil - until the decline in oil prices accelerated. WTI fell down to its MA 21. However, it bounced from this marker, ending the day slightly above the MA21. Oil futures shed all of Tuesday's gains on Wednesday settling with considerable loses.

ICE Gasoil contract for July delivery settled at 581.00 USD on Wednesday, this is -2.25 USD below Tuesday's settlement. With some 55,200 deals the traded volume (front month) was about on average.

After the stochastic indicator gave a buying signal on Wednesday, it can be considered neutral at ICE and NYMEX charts today for its lines are no longer drifting apart. The trend WTI has shown in the past week continues. Since May, the contract is consolidating, trading sideways within the range of the Bollinger Band. It has also frequently tested the MA21, which is moving inside this range. After the upper line of the Bollinger Band refrained buying orders on Wednesday, WTI is set to test the MA21. Only if this support is breached sustainably and if WTI settles below this mark will more potential down to the lower line of the Bollinger Band be generated. The MA21, the psychological mark of 60 USD and Wednesday's lows are important supports. If WTI drops below these supports, technical selling pressure is likely to rise. As long as there are no fresh cues, we assess the technical constellation as neutral, however.

U.S.

Nymex below average: Oil futures in London and New York have just edged higher due to short-covering following Wednesday's losses. Still, prices have moved in a very narrow range so far. The traded volume at NYMEX is far 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 and for the economic indicators that are on the agenda today.

Forecast: Crude oil -2.3; Distillates +0.8; Gasoline -0.2 million barrels vs previous week.
DOE: Crude oil -4.9; Distillates +1.8; Gasoline +0.7 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 25-6)
380cst $341
180cst $432
MGO $610

New Orleans (ex-wharf indications 25-6)
380cst $352
180cst $403
MGO $595

Singapore (delivered indications 25-6)

WTI is losing with -$1.31. Singapore paper is down with -$10.15 for 180cst up with -$11.25 for 380cst for Jul, and for Aug 180 cst -$10.15 and 380cst with -$9.50 with MGO contracts Jun losing with -$1.71 and in Jul with -$1.70. The cargo market is bullish with 180cst +$2.01, 380cst with +$0.13 and MGO down with +$1.89.

380cst $348
180cst $366
MGO $564

Fujairah (delivered indications 25-6)

380cst $346
180cst $371
MGO $737

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $328
MGO 0.1%S: $560