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

After having declined the days before, oil futures traded in a narrow range on Tuesday morning. WTI's key support at 52.40 USD limited losses even though the technical constellation as well as market fundamentals remained bearish. After a phase of consolidation in the morning, when investors covered some of their short positions, the downside renewedly predominated. The decline in the euro/dollar favoured downward moves and when WTI dropped below its key support, technical selling orders were automatically triggered. In the course of the afternoon, oil prices slumped breaching several short-term supports. Near 50.50 USD WTI and 55.00 USD Brent, selling pressure waned. In the evening, oil futures even regained ground paring earlier losses due to the EIA's bullish monthly energy report. Particularly NYMEX Gasoline surged. Last night, the API released its report on US oil inventories. This data didn't provide any decisive cues, however, and so oil futures were nearly flat Tuesday night.

ICE Gasoil contract for July delivery settled at 518.00 USD on Tuesday, this is 18.25 USD below Monday's settlement. With some 56,300 deals the traded volume (front month) was about on average.

The stochastic indicator has generated a buying signal at the WTI chart as its lines have crossed. At the Brent and the Gasoil chart, the lines of the indicator might also cross soon, however, the bullish cues haven't been confirmed at these charts up to now. The technical downward potential has been largely spent by the drop oil futures had seen at the beginning of this week. The stochastic indicator at the WTI chart points to some short-covering but from the merely technical perspective, we still consider the situation as neutral until the stochastic indicator confirms the buying signal at the Brent and the Gasoil-charts.

U.S.

Nymex above average: After Tuesday's rise, oil futures shed some of their gains this morning. In Globex electronic trading oil is trading rather sideways in a narrow margin. The traded volume at NYMEX is above average at this time of the day. Investors are waiting for the European financial and forex markets to open and for the release of a few economic indicators. They will also eye closely the nuke talks in Vienna for any progress made and the developments in the Greece issue, as well as the release of the DOE's data on U.S. petroleum stocks.

Forecast: Crude oil -1.0; Distillates +1.0; Gasoline ±0.0 million barrels vs previous week.
API: Crude oil -1.0; Distillates +4.2; Gasoline -2.0 million barrels vs previous week.

Houston (ex-wharf indications 8-7)
380cst $323
180cst $462
MGO $594

New Orleans (ex-wharf indications 8-7)
380cst $334
180cst $383
MGO $555

Singapore (delivered indications 8-7)

WTI is losing with -$2.00. Singapore paper is down with -$5.00 for 180cst up with -$5.25 for 380cst for Jul, and for Aug 180 cst -$5.00 and 380cst with -$5.00 with MGO contracts Jun losing with -$1.48 and in Jul with -$1.46. The cargo market is bearish with 180cst -$8.98, 380cst with -$8.43 and MGO down with -$1.94.

380cst $304
180cst $318
MGO $506

Fujairah (delivered indications 8-7)

380cst $304
180cst $328
MGO $725

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $291
MGO 0.1%S: $493