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Crude oil futures inched higher this morning, as sentiment improved after Greece's parliament passed austerity measures demanded by the country’s creditors in order to secure a third bailout package.

After oil prices had increased on Tuesday, they started on a high level on Wednesday. Market players adjusted their positions after the accord over Iran's nuclear programme as it became clear that sanctions wouldn't be lifted immediately and Iran would take some months to ramp up its oil exports. Whilst good economic indicators out of China and the API's report (released Tuesday night) bolstered prices, news on Irak planning to step up its oil exports in a reaction on the nuke deal weighed on oil prices in the morning. Despite the neutral market fundamentals and the technical constellation, oil futures tested their downside in the first half of the day. First short-term supports were breached and the stochastic indicator generated a selling signal at the Gasoil chart. In the early afternoon, selling pressure increased as the USD profited from surprisingly positive economic indicators out of the USA, making dollar-denominated oil more expensive for investors outside the USA. At this time, the stochastic indicator also gave a selling signal at the Brent chart, adding to pressure on oil futures. That is why oil prices already posted considerable losses even before the release of the DOE's data on US oil inventories (at 4.30 p.m.). The DOE's data contained bullish as well as bearish cues, which offset each other. Market players thus showed a subdued reaction on the data. Eventually, oil prices continued to decline, however, ending the day in the red.

ICE Gasoil contract for August delivery settled at € 475.52 on Wednesday, this is € 5.22 below Tuesday's settlement. With some 79,400 deals the traded volume (front month) was above average.

The stochastic indicator is bearish this morning as its lines crossed at the Brent and the Gasoil chart on Wednesday and the selling signal has meanwhile also been confirmed at the WTI chart. However, the RSI climbed above 30% at the Brent chart, generating a buying signal. For the time being, this buying signal hasn't been confirmed yet at the WTI and the Gasoil chart. Still, it might favour some short-covering in the course of the day. The technical constellation thus isn't giving any clear cues at the moment; the more so as the charts are meanwhile showing a sideways consolidation and the supports are still strong. We are assessing the technical constellation as slightly bearish this morning against the backdrop of the cues provided by the stochastic indicator at ICE and NYMEX charts. Even so, there should only be fresh downward potential if oil futures drop below Wednesday's lows, breaking below their sideways consolidation. The bullish signals of the RSI at the Brent chart is slowing down the decline at oil markets. It might make the technical constellation slightly bullish as well in the short-term if it also gives a buying signal at the Gasoil or the WTI chart.

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.

Forecast: Crude oil -0.9; Distillates +1.7; Gasoline +0.3 million barrels vs previous week.
DOE: Crude oil -4.3; Distillates +3.8; Gasoline +0.1 million barrels vs previous week.
API: Crude oil -7.3 million barrels vs previous week.

Houston (ex-wharf indications 16-7)
380cst $302
180cst $433
MGO $550

New Orleans (ex-wharf indications 16-7)
380cst $314
180cst $380
MGO $528

Singapore (delivered indications 16-7)

WTI is bearish with -$0.82. Singapore paper is down with -$5.50 for 180cst up with -$5.50 for 380cst for Jul, and for Aug 180 cst -$4.90 and 380cst with -$5.35 with MGO contracts Jun losing with -$2.00 and in Jul with -$1.95. The cargo market is bullish with 180cst +$1.93, 380cst with +$1.75 and MGO with +$0.70.

380cst $313
180cst $325
MGO $503

Fujairah (delivered indications 16-7)

380cst $313
180cst $334
MGO $733

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $293
MGO 0.1%S: $485