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WTI oil futures declined on Wednesday, as market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.

Oil prices at ICE and NYMEX opened lower on Tuesday, extending their losses until noon as the prospect of an agreement in the nuclear issue and technically driven selling orders weighed. More downside was offered when prices fell below their Monday's lows. Still, the losses were limited as traders waited for more details on the nuclear deal to be released, in particular on when the sanctions against Iran would be lifted. If this happens, the country would be able to considerably increase its crude exports within a short period of time. When the IAEA in the official press conference announced that the sanctions might not be before the end of the year market participants that had bet on falling prices in case of a deal quickly covered their short positions. Oil thus started to climb at the opening of the session in New York, compensating all of their day's losses. But, as the nuclear deal is bearish for oil in the long run even if it will not affect the supply situation in the short term, the market was volatile and without a clear direction during the session. Finally the bullish effect of the short covering prevailed, helping oil to their day's highs towards the end of the session. The API's report on U.S. petroleum inventories that the institute released at 10.30 p.m., as usual, showed a strong draw in crude stocks and was thus apt to lend additional support so that prices settled higher in London and New York.

ICE Gasoil contract for August delivery settled at 529.25 USD on Tuesday, this is 7.50 USD below Monday's settlement. With some 90,400 deals the traded volume (front month) was far above average.

The Stochastic this morning has not triggered any fresh selling signals as its two lines have not yet crossed. The indicator is therefore still regarded neutral. As for the RSI, it does not give any impetus either. If the indicator has breached the 30 line at the Brent chart it has not yet succeeded to do so for the WTI and the gasoil. In the absence of any directive signals we consider the technical constellation still as neutral.

U.S.

Nymex above average: Oil prices are consolidating their gains in Asian trading and Globex electronic trade this morning, trading in a narrow lateral range below Tuesday's highs that so far have not been breached. The traded volume at NYMEX is little 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 official report on U.S. petroleum inventories released by the DoE at 4.30 p.m. as usual.

Houston (ex-wharf indications 15-7)
380cst $308
180cst $472
MGO $564

New Orleans (ex-wharf indications 15-7)
380cst $318
180cst $384
MGO $529

Singapore (delivered indications 15-7)

WTI is bullish with +$1.00. Singapore paper is up with +$2.25 for 180cst up with +$2.25 for 380cst for Jul, and for Aug 180 cst +$2.50 and 380cst with +$2.40 with MGO contracts Jun gaining with +$0.55 and in Jul with +$0.60. The cargo market is bearish with 180cst -$2.82, 380cst with -$4.23 and MGO down with -$0.86.

380cst $311
180cst $325
MGO $504

Fujairah (delivered indications 15-7)

380cst $311
180cst $329
MGO $727

ARA (Amsterdam - Rotterdam - Antwerp)

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