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Oil prices renewedly bounced off their supports as decisive news is lacking. The slightly advancing euro has provided some impetus. A clear tendency is only expected in late afternoon trade, however, when the DOE will release its data regarding US oil stocks and the outcome of the Fed's meeting will be announced.

Given the slightly bearish technical constellation, oil futures traded lower at ICE and NYMEX on Tuesday morning, breaching first supports. At that time, the euro tested its support at 1.2570 dollars. The common currency has seen some upward correction however, after this support proved strong. Oil futures have likewise found strong support at 82.30 (WTI crude), making way for a technical counter-reaction. In the course of the day, the first resistance lines for the G.Oil at 850.00 dollars and for the Brent at 96.85 dollars limited the upward potential of oil futures at ICE. The IMF's success in ramping up the means for its crisis fund and speculations on fresh expansive measures by the US Fed have provided support, however. Nuke talks with Iran came to an end only late in the evening but have not brought about any decisive progress. Thus oil futures settled with some gains last night.

ICE Gasoil contract for July delivery settled at 845.00 dollars on Tuesday. This was 3.50 dollars above Monday's settlement. With some 62,100 contracts the traded volume was above average.

OPEC: Over the last two days negotiations between Iran and the five permanent members of the UN Security Council plus Germany have been taking place in Moscow. However, last night they concluded without agreement and with the Iranian reneging on an earlier deal with the UN nuclear watchdog. As a result the 1st July EU embargo on Iranian crude imports will proceed along with further US and EU sanctions.

The stochastic indicator can be interpreted as neutral at NYMEX and ICE charts this morning,. Yesterday morning, the indicator gave a selling signal for the WTI which had but brief impact on quotations. Given the speculations on more measures of monetary easing, the technical situation will probably remain in the background again today and futures are likely to stick to their midterm trend lines.

U.S.

Nymex access losing: Oil futures were little changed in Asian trading and on Globex electronic trading platform this morning but have meanwhile breached first supports. The traded volume was about on average, whereas the August contract has already been more actively traded as the July contract will expire this evening (8.30 p.m.). Market players will closely watch the decisions of the FOMC today. As to economic indicators, only the German producer price index is scheduled today.

API's: Crude oil -0.6; distillates -0.3; gasoline +1.1 million barrels vs previous week. Refinery utilization +2.4%
DOE's; due out tonight
Forecasts: Crude oil -1.0; distillates +1.4; gasoline +1.2 million barrels vs previous week

Houston (ex-wharf indications 19-6)

380cst $578
180cst $611
MGO $910

New Orleans (ex-wharf indications 19-6)

380cst $586
180cst $621
MGO $930

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

Crude is bounced up, countering Yesterday's losses with WTI +$1.49. Singapore paper is less bullish with +$6.25 for 180cst and +$6.25 for 380cst for Jul, and for Aug 180 cst +$5.00 and 380cst +$6.00 with MGO contracts Jul +$1.45 and Aug +$1.45. The cargo market is bearish still, dropping with 180cst -$22.78, 380cst -$21.93 and MGO -$2.26.

The Singapore fuel oil markets fell more than $21.75 during the morning window yesterday as crude softened. The delivered bunker premiums climbed to around $9.5 above cargo prices as sellers were not keen to sell after a big drop in outright prices coupled with a stronger crude movement afterwards. Bunker fuel oil swaps lost nearly $2/mt at the front for Singapore papers. Backend was stronger for papers, posting up to $2/mt gains. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $585
180 cst $595
MGO $810

ARA (Amsterdam - Rotterdam - Antwerp)

The avail constraints continue to underpin both hsfo and lsfo levels, despite falling crude prices. Not much relief is expected within the next couple of weeks, with continuing loading delays.

Rotterdam

Indications for delivered bunkers:

380cst : $ 567
(1.0 %) :$ 604
180cst: $ 581
(1.0 %):$ 614
MGO 0.1%S: $847