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WTI oil futures held near the lowest level in more than six years this morning, 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 futures at ICE and NYMEX kicked off in the red on Tuesday morning, weighed down by bearish market fundamentals and a lower euro. However, technical selling pressure had waned which is why there was no fresh downward potential. Prices thus climbed back to their opening levels around noon. As there was no decisive news, Brent and Gasoil consolidated near these levels whereas WTI was fostered by short covering. Speculators had held a massive short position and now took the chance to cover these positions. Moreover, WTI was buoyed by convincing data on the US housing market. The API's data on US oil inventories released in the evening came in bullish but didn't have any sustainable impact on oil futures.

ICE Gasoil contract for September delivery settled at € 423.98 on Tuesday, this is -€ 4.05 above Monday's settlement. With some 47,200 deals the traded volume (front month) was below average.

Since investors covered their short positions with WTI Tuesday evening, the Stochastic indicator gave a buying signal at the WTI chart. It can thus be interpreted as bullish now. The buying signal hasn't been confirmed at the Brent and the Gasoil chart up to now. The RSI doesn't give any fresh cues either. Despite the buying signal of the Stochastic indicator at the WTI chart, we assess the technical constellation as neutral as WTI's superordinate downtrend is still intact and the MA7 is still limiting the upside. If WTI sustainably exceeds this marker (approximately € 38.35), more short-covering might be triggered ahead of the release of the DOE's report. This might also push oil futures at ICE higher. If the downtrend remains intact, however, WTI is likely to find strong support between 41.35 and € 37.27 in the coming days.

U.S.

Nymex on average: Oil futures have gained some ground in early European trading this morning as the euro strengthened. In Asian trading, the drop in Asian stock markets slightly weighed on the oil market. The traded NYMEX volume is on average at this time of day. Market participants are now waiting for the European financial and forex markets to open as well as for the release of some economic indicators. Moreover, the DOE will release its data on US oil inventories at 4.30 p.m.

Houston (ex-wharf indications 19-8)
380cst $232
180cst $385
MGO $479

New Orleans (ex-wharf indications 19-8)
380cst $256
180cst $318
MGO $475

Singapore (delivered indications 19-8)

WTI is bullish with +$0.50. Singapore paper is down with -$0.25. for 180cst with ±$0.00 for 380cst for Sep, and for Oct 180 cst ±$0.00 and 380cst with -$0.25 with MGO contracts Sep gaining with +$0.72 and in Oct with +$0.73. The cargo market is bearish with 180cst -$3.99, 380cst with -$3.82 and MGO with +$0.30.

380cst $245
180cst $259
MGO $435

Fujairah (delivered indications 19-8)

380cst $260
180cst $305
MGO $644

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $235
MGO 0.1%S: $441