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Technical indicators: bearish

After the publishing of the DOE's data yesterday, oil futures edge higher, with ICE Brent and NYMEX C. Oil breaching first resistance lines. This triggered even more selling orders. The decrease in crude oil and gasoline support prices, as does the weaker dollar. Investors are waiting for the FED's decisions. This morning, oil prices tumble on US economic growth concerns.

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: crude oil -1.7 ; distillates +1.2; gasoline -0.5 million barrels vs previous week. Refinery utilization +3.1%

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

Houston (ex-wharf indications 22-6)

380 cst $633
180 cst $662
MDO $973

Very tight avails for 180 cst

New Orleans (ex wharf indications 22-6)

380 cst $635
180 cst $664
MDO $976

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

Crude is slowing, but losing still with WTI -$0.07. Singapore paper is turning slowly, gaining with +$0.75 for 180 cst and +$1.05 for 380 cst for Jul, and for Aug 180 cst +$0.75 and 380cst +$1.05 with MGO Jul contracts at +$0.45 and for Aug at +$0.43. The cargo market is reacting to crude and paper with 180cst -$1.31, 380cst -$0.65 and MGO -$2.06.

The Singapore fuel oil market fell marginally, losing a few cents, during the Platts window yesterday. The ex-wharf 380cst product was trading at $653.00/mt while MGO was assessed at $933.00/mt. The delivered bunker premiums traded at $8.00-9.00 above cargo prices. Bunker fuel swaps gained in a range of $6.50-8.50/mt along the curve both in Rotterdam and Singapore. Gains were more pronounced at the front of the forward curve. Both papers remain backwardation with Cal 2012 papers assessed at more than $20.00/mt discount versus spot prices. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $650
180 cst $662
MDO $922

Fujairah (delivered indications 23-6)

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

Rotterdam

Indications for delivered bunkers:

380cst :$ 617
(1.0 %) :$ 678
180cst :$ 642
(1.0 %) :$ 702
MGO 0.1%S: $ 920