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WTI oil futures tumbled to the lowest level in more than three months this morning, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose unexpectedly last week.

Oil futures traded near Monday's lows on Tuesday morning. WTI tested its key support at 50 USD but failed to sustainably break below this level. Prices were fostered by the expectations of a decline in US crude oil inventories but chiefly by the rise in the euro/dollar. A steadier euro makes dollar-denominated oil cheaper for holders of the common currency, prompting these investors to raise their long positions. Moreover, the WTI contract with August delivery expired on Tuesday evening. Investors thus rolled their last risk positions to contracts with later delivery, otherwise tending to stick to the sidelines. Late in the evening, the API released its data on US oil inventories. However, there is no data available yet for product inventories. The changes in crude oil stockpiles are surprisingly bearish. After the expiry of the August WTI contract, oil futures ended the day with small gains only losing ground again in the early morning due to the API's data.

ICE Gasoil contract for August delivery settled at 511.25 USD on Tuesday, this is ±0.00 USD compared to Monday's settlement. With some 47,500 deals the traded volume (front month) was below average.

The Stochastic indicator gave a buying signal at the Gasoil chart on Tuesday. This slightly bolstered oil prices in the afternoon. However, the indicator lost some of its influence as its buying signal was neither confirmed at the Brent, nor at the WTI chart. The RSI didn't provide any bullish cues either. Moreover, the lines of the Stochastic indicator are no longer drifting apart. The buying signal has thus been largely spent. Since fresh cues are lacking this morning, the technical constellation can be considered neutral, although oil futures are still moving in the boundaries of their short-term downtrend between the lower Bollinger Band and the MA7. If the lines of the Stochastic indicator cross at the Brent and the WTI chart, new bullish cues would be generated, favouring a test of the upside. However, a break below WTI's key support at 50.00 USD would generate a selling signal.

U.S.

Nymex above average: Oil futures edged lower in Asian trading and at NYMEX Globex this morning weighed down by the API's bearish data on US oil inventories. Brent and WTI have already tested the supports near Tuesday's lows. 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 some economic indicators. Moreover, they are eying the release of the DOE's data on US oil inventories at 4.30 p.m.

Houston (ex-wharf indications 22-7)
380cst $298
180cst $478
MGO $537

New Orleans (ex-wharf indications 22-7)
380cst $310
180cst $375
MGO $515

Singapore (delivered indications 22-7)

WTI is bearish with +$0.05. Singapore paper is down with -$0.25 for 180cst up with +$0.45 for 380cst for Aug, and for Sep 180 cst -$0.25 and 380cst with -$0.10 with MGO contracts Aug gaining with +$0.22 and in Sep with +$0.22. The cargo market is bearish with 180cst -$3.85, 380cst with -$3.99 and MGO with -$0.48.

380cst $300
180cst $313
MGO $478

Fujairah (delivered indications 22-7)

380cst $314
180cst $339
MGO $729

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $291
MGO 0.1%S: $483