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Technical indicators: neutral to bearish

Despite the positive news from Greece, the euro shed earlier gains at midday, helping the US dollar up and weighing on oil prices. Yet trendchannels are still intact and analysts expect no further decline ahead of DOE data and FOMC meeting. WTI Crude Oil reached its lowest price since January. With the vote in Greece settled, investors' focus is now again on the US economy, with the FED's decision on interest rates due and a press conference scheduled this evening, expected to also contain a forcast of the country's economic development. After a series of disappointing data, this might emerge relatively restrained, thus weighing on oil prices.

Yesterday oil futures at ICE and NYMEX rose in the morning, supported by a weaker US dollar/stronger euro. While first short-term resistance lines were breached, the existing uptrend channel remained intact and in the afternoon, gains were capped by technical selling orders and worries over sluggish U.S. oil demand after weak US housing data, which sent oil prices down for a third straight day. Important support lines were breached in the process. Futures later in the evening recovered in part after the Greek Prime Minister Papandreou passed the confidence vote in parliament and API data showed product stocks in the world's top oil consumer fell last week.

ICE Gasoil contract for July delivery settled at 921.25 dollars on Tuesday. This was 11.25 dollars below Monday's settlement. With some 72,800 contracts, the traded volume was above average.

As important support lines were breached Tuesday, the short-term downtrend is still intact for all contracts. While the Stochastic indicator at the gasoil and brent chart doesn't give any clear signals yet, the one at the WTI chart is still bullish. The RSI is in oversold territory on all charts, making an upward correction possible. The first support for the WTI crude is seen at 92.85 dollars, the first resistance at 94.80 dollars. Brent's first resistance is seen at 112.50 dollars, its first support is at 109.90 dollars.

U.S.

Nymex Access gaining. Oil prices are trading in a narrow lateral range in East Asia and Globex electronic trading this morning as traders are waiting for direction. The traded volume is about on average.

APIs: crude oil -0.1; distillates -0.5; gasoline -1.5 million barrels vs previous week. Refinery utilization +2.0%

DOEs: due out tonight.

Forecasts: Crude oil -0.1; distillates +0.7; gasoline +0.8 million barrels vs previous week

Houston (ex-wharf indications 21-6)

380 cst $629
180 cst $659
MDO $973

Very tight avails for 180 cst

New Orleans (ex wharf indications 21-6)

380 cst $631
180 cst $661
MDO $977

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is losing some of its recent gains with WTI -$0.89. Singapore paper is mirroring crude, losing with -$1.45 for 180 cst and -$1.30 for 380 cst for Jul, and for Aug 180 cst -$1.95 and 380cst -$1.90 with MGO Jul contracts at -$2.16 and for Aug at -$2.16. The cargo market is reacting to crude and paper with 180cst +$5.41, 380cst +$6.17 and MGO +$0.47.

The Singapore fuel oil market was up more than $5.50 during the Platts window yesterday tracking the stronger crude values. There was firm buying interest and the Asian fuel oil crack remains strong as the market is still tight. The delivered premiums were at around $10.00 above cargo prices yesterday. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $650
180 cst $662
MDO $920

Fujairah (delivered indications 22-6)

380cst: $645
180cst: $675
MGO: $1030

Rotterdam

Indications for delivered bunkers:

380cst :$ 621
(1.0 %) :$ 679
180cst :$ 645
(1.0 %) :$ 704
MGO 0.1%S: $ 924