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Oil prices added to overnight losses in European trade this morning, sliding to a more than three-week low amid speculation weekly supply data due later in the session will show U.S. crude inventories rose for the first time in four weeks last week.

The technical selling pressure notably eased Tuesday morning which is why we assessed the technical constellation as neutral. Monday's lows served as the key-supports oil futures had to break through before approaching the lower Bollinger Band. The fear of Great Britain possibly exiting the EU Tuesday continued to weigh on oil futures. A Brexit might not only have a negative impact on economic growth and oil demand, it might also send the Dollar higher, making oil futures less attractive for holders of other currencies. Oil futures at ICE and NYMEX thus lost ground on Tuesday, already breaking below Monday's lows in the morning. The IEA's bullish monthly energy report and the expected draw in US crude oil stockpiles prevented heftier losses, though. In the course of the afternoon, oil prices thus remained in a rather narrow range. Oil futures only slumped late in the evening, when the API released its data on US oil inventories. Eventually, oil futures ended the day deeply in the red.

ICE Gasoil contract for July delivery settled at 443.50 USD on Tuesday, this was 8.75 USD below Monday's settlement. With some 67,400 deals, the traded volume (front month) was above average.

Neither the Stochastic indicator, nor the RSI are currently giving off any technical signals. The indicators can thus be interpreted as neutral again after having given off signals last week. Oil futures have dropped clearly below the 21-period moving average. Moreover, fresh downward potential was generated earlier this morning, when oil futures broke below Tuesday's lows . WTI might thus still approach the lower Bollinger Band near 47.35 USD. This level might be the next price target. Even though there haven't been any decisive selling signals yet, we assess the technical constellation as slightly bearish again as it favours tests of the downside.

U.S.

Nymex above Average: Oil futures are currently recovering from the losses they had posted in East Asia and NYMEX ectronic trading. The traded volume at NYMEX is above average this morning. Investors are waiting for the European financial and forex markets to open as well as for today's economic indicators. They are also keeping an eye on Nigeria. In the afternoon at 4.30 p.m., the DOE will release its data on US petroleum stockpiles.

Houston (ex-wharf indications 15-6)
380cst $237
180cst $337
MGO $479

New Orleans (ex-wharf indications 15-6)
380cst $240
180cst $285
MGO $458

Singapore (delivered indications 13-6)

380cst $241
180cst $246
MGO $441

Fujairah (delivered indications 13-6)

380cst $245
180cst $250
MGO $489

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $233
MGO 0.1%S: $442