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Oil futures rose this morning, after shares in China surged amid fresh efforts by the government to calm the market in wake of recent losses.

Oil futures at ICE and NYMEX posted some losses on Wednesday morning as market fundamentals were slightly bearish. Since the EIA's monthly energy report came in bullish and the technical constellation provided some buying signals, oil prices regained ground around noon, approaching Tuesday's highs. Libya lifted the "Force Majeure" off deliveries from one of its biggest export terminals, Ras Lanuf. However, this has hardly affected oil futures on Wednesday as investors rather focused on the release of the DOE's report on US oil inventories. After the API's data had come in bullish Tuesday night, market players tended to cover their short-positions ahead of the release of the DOE's figures. However, the DOE's report provided a surprisingly bearish picture sending oil futures down. WTI even hit a new low whereas NYMEX gasoline futures but moderately declined. In the evening and overnight, oil futures recovered, finishing in the black.

ICE Gasoil contract for July delivery settled at 524.25 USD on Wednesday, this is 6.25 USD above Tuesday's settlement. With some 56,300 deals the traded volume (front month) was about on average.

The stochastic indicator had already given a buying signal at the WTI chart on Wednesday. Meanwhile, the lines of the indicator have also crossed at the Brent and the Gasoil charts, giving additional buying signals. The bearish technical constellation that had influenced oil futures at the end of last week has thus changed. However, there need to be more buying cues to generate a sharp upward correction. Such buying cues might be provided by the RSI if the indicator exceeds 30% at ICE charts. A rise above Wednesday's highs might also bring fresh momentum for oil markets. Tuesday's and Wednesday's highs mark an area of resistance for Brent and Gasoil. Until oil futures have exceeded these levels, we consider the technical constellation as neutral to bullish.

U.S.

Nymex above average: Oil prices continued to rise this morning as investors covered their short-positions. The technical constellation provided some momentum as well even though market fundamentals are still slightly bearish. The traded volume at NYMEX is above average at this time of the day. Market participants 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 Greece's crisis.

Forecast: Crude oil -1.0; Distillates +1.0; Gasoline ±0.0 million barrels vs previous week.
DOE: Crude oil +0.4; Distillates +1.6; Gasoline +1.2 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 9-7)
380cst $314
180cst $466
MGO $578

New Orleans (ex-wharf indications 9-7)
380cst $321
180cst $384
MGO $545

Singapore (delivered indications 9-7)

WTI is bullish with +$1.73. Singapore paper is up with +$8.25 for 180cst up with +$8.75 for 380cst for Jul, and for Aug 180 cst +$8.25 and 380cst with +$7.50 with MGO contracts Jun gaining with +$1.15 and in Jul with +$1.34. The cargo market is bearish with 180cst -$4.86, 380cst with -$5.14 and MGO down with -$1.54.

380cst $305
180cst $318
MGO $504

Fujairah (delivered indications 9-7)

380cst $305
180cst $328
MGO $725

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $297
MGO 0.1%S: $503