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Technical indicators: bullish

Oil futures traded on a higher level during early morning trade on growing confidence the Greek parliament will approve a 5 year package of spending cuts, paving the way for an additional European bailout package.

Oil futures started soft on Tuesday morning at ICE and NYMEX testing their downward potential. With the US oil inventories data ahead investors liquidated some of their recently built short positions. In the course of the afternoon, oil prices extended their gains, breaching first resistance lines. Investors' readiness to take risks had increased again on Greece's creditors showing willing to contribute to its debt restructuring, and thus supported financial markets. This led to profit taking regarding the US dollar, making way for more upward potential throughout the oil complex. During evening trade NYMEX Crude Oil was lifted again, following the solid tendency of ICE Futures. This is supposed to have been due to storm warnings concerning the Gulf of Mexico and the bullish API impulses.

ICE Gasoil contract for July delivery settled at 890.75 dollars on Tuesday. This was 17.25 dollars above Monday's settlement. With some 81,900 contracts, the traded volume was above average.

Regarding WTI crude, the selling signal given by the stochastic indicator yesterday still has a bearish effect. As for NYMEX Crude oil, a bottom has developed at a mark between 89.60 dollars to 90 dollars, which is considered an important support today. Should this support be breached, there will be further downward potential up to 89 dollars. After prices have edged higher during yesterday's evening trade, analysts expect some profit taking and consider the given downward trends as still valid. Crucial momentum might again be given by the Euro/Dollar parity today. The first support for the WTI crude is seen at 89.60 dollars, the first resistance at 92.35 dollars. The Brent's first resistance is seen at 106.80 dollars, its first support is at 102.30 dollars.

U.S.

Nymex Access losing. Oil futures diverge during electronic morning trading. Whereas Heating Oil starts on a higher level, WTI slightly retreats on some profit taking, as NYMEX Crude Oil only reached its high last night after the publishing of the bullish API's data. The volume traded at NYMEX is below average for this time of day. Investors are waiting for the opening of the european markets, the results of the ballots in Greece and for the DOE data to be published at 4.30 p.m. in the afternoon.

APIs: crude oil -2.7; distillates -0.9; gasoline -0.1 million barrels vs previous week. Refinery utilization +0.0%

DOEs: due out tonight.

Forecasts: Crude oil -1.0; distillates +1.1; gasoline +0.0 million barrels vs previous week.

Houston (ex-wharf indications 28-6)

380 cst $622
180 cst $653
MDO $927

Very tight avails for 180 cst

New Orleans (ex wharf indications 28-6)

380 cst $624
180 cst $655
MDO $929

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

Crude is gaining bullish momentum with WTI +$2.55. Singapore paper is reflecting it, gaining with +$10.70 for 180 cst and +$10.45 for 380 cst for Jul, and for Aug 180 cst +$10.15 and 380cst +$10.15 with MGO Jul contracts at +$3.15 and for Aug at +$3.18. The cargo market is starting to turn, gaining with 180cst +$5.34, 380cst +$5.83 and MGO +$0.93.

The Singapore fuel oil market rebounded more than +$5.5 during the Platts window yesterday tracking the previous stronger crude closing. The market is expected to see some level of tightness due to lack of bunker specifications products despite a build of 2.8 mbbl in the Singapore heavy residual inventory. The delivered premiums were higher at around $14.00 above cargo prices yesterday. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $647
180 cst $657
MDO $908

Fujairah (delivered indications 29-6)

380cst: $637
180cst: $667
MGO: $1025

Rotterdam

Yesterday in the MOC hsfo was traded between 600-604.50 usd and lsfo between 655-655.50 usd.

Indications for delivered bunkers:

380cst :$ 613
(1.0 %) :$ 675
180cst :$ 635
(1.0 %) :$ 719
MGO 0.1%S: $ 911