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Crude oil futures tumbled sharply this morning, as traders awaited developments surrounding ongoing nuclear talks between the West and Iran, which could push millions of barrels of crude into the oversupplied world market.

Oil futures at ICE and NYMEX tended to the upside on Friday, profiting from further short-covering, the more so as the technical constellation was slightly bullish in the morning. However, the IEA's monthly energy report soon weighed on investor sentiment. It signalled that prices might not have hit their lows yet and oil demand will rise more slowly than expected - by a mere 1.2%. The report caused a downward correction at oil prices in the morning although market players avoided fresh short-positions against the backdrop of the ongoing negotiations between Greece and its creditors and the nuke talks with Iran. Commerzbank downwardly revised its price forecast for Brent in 2015 by 10 USD to 65 USD. Oil futures thus retreated in the course of the afternoon even though there was no sharp price drop. At last, oil futures settled nearly flat. Later on Friday evening, Baker Hughes released its rig count which showed an increase in the number of active US oil rigs for the second consecutive time.

ICE Gasoil contract for August delivery settled at 534.50 USD on Friday, this is -3.50 USD above Thursday's settlement. With some 82,700 deals the traded volume (front month) was above average.

The stochastic indicator has exceeded 50% at the Brent-chart but the lines of the indicator are converging at ICE and at NYMEX charts, losing their bullish impact. In the course of the day, the stochastic indicator might even give a selling signal if the black line drops below the red line. The RSI is neutral as well, after having slipped back below 30%. The indicator is now in oversold territory. Currently, the technical constellation isn't giving any fresh cues but some downside was generated when oil futures fell below Friday's lows. That is why we assess the technical constellation as neutral to bearish.

U.S.

Nymex above average: Oil prices successively lost ground weighed down by the Baker Hughes report and the bearish outlook analysts provided. The traded volume at NYMEX is far 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 closely eye the nuke talks in Vienna and the developments in Greece's crisis. Moreover, OPEC will release its monthly energy report today.

Houston (ex-wharf indications 13-7)
380cst $311
180cst $473
MGO $575

New Orleans (ex-wharf indications 13-7)
380cst $317
180cst $378
MGO $531

Singapore (delivered indications 13-7)

WTI is bearish with -$1.61. Singapore paper is down with -$5.50 for 180cst up with -$5.00 for 380cst for Jul, and for Aug 180 cst -$5.00 and 380cst with -$5.35 with MGO contracts Jun gaining with -$1.18 and in Jul with -$1.18. The cargo market is bullish with 180cst +$7.71, 380cst with +$8.76 and MGO down with +$0.65.

380cst $313
180cst $327
MGO $510

Fujairah (delivered indications 13-7)

380cst $316
180cst $339
MGO $727

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $298
MGO 0.1%S: $498