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Brent crude prices fell on Tuesday on rising output from the Middle East and ahead of an OPEC meeting later this week, while U.S. crude edged higher as the summer driving season began.

Most investors in the USA and the UK were absent on Monday. Whilst some US traders enjoyed a long weekend against the backdrop of Memorial Day, those who were at their desks avoided new risks. Monday morning, the slightly bearish technical constellation weighed on oil futures, which is why Brent and WTI tested the supports near their 7-period moving averages. Since market players tended to stay on the sidelines, these support remained strong, though. In the afternoon successively regained ground, paring earlier losses. ICE Gasoil saw the sharpest price increase among all contracts. It is still bolstered by the strikes in France. Last week, the strike had resulted in the (partial) shut-down of several refineries. As expected, the traded volumes remained very low on Monday. Oil futures eventually consolidated on a high level slightly below this year's highs.

ICE Gasoil contract for June delivery settled at 452.25 USD on Monday, this was 3.75 USD above Friday's settlement. With some 17,500 deals, the traded volume (front month) was far below average.

The selling signal of the Stochastic indicator has weakened as the lines of the indicator are no longer diverging. Since oil futures consolidated above the 7-period moving average on Monday, the technical constellation didn't significantly change. The 7-period moving average remains a key support at the Brent and the WTI chart. Oil futures will only see a considerable downward move if they sustainably drop below this mark. Then the lines of the Stochastic indicator would diverge again, adding to selling pressure. Currently, the technical constellation can be assessed as neutral.

U.S.

Nymex on Average: Oil futures consolidated on a high level in East Asia. In NYMEX electronic trading this morning, Brent and WTI failed to break above their first resistances which is why oil futures are currently edging lower. Due to the Memorial Day-holiday on Monday, the traded volume at NYMEX is far above average this morning. Market participants are waiting for the European financial and forex markets to open and for the release of a raft of economic indicators. They are also looking ahead to news on output losses in Canada and Nigeria and on the strikes in France.

Houston (ex-wharf indications 31-5)
380cst $226
180cst $327
MGO $462

New Orleans (ex-wharf indications 31-5)
380cst $231
180cst $277
MGO $448

Singapore (delivered indications 31-5)

380cst $231
180cst $236
MGO $439

Fujairah (delivered indications 31-5)

380cst $243
180cst $248
MGO $494

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $239
MGO 0.1%S: $443