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The euro still weighed on oil prices this morning, Volatile stock markets added to the pressure on oil futures. The Brent and the WTI crude fell through their first supports. Traders expect the DOE's data to come out slightly bearish this afternoon. Ahead of the release of the data, losses are likely to be limited.

Oil prices consolidated on a high level Tuesday morning but in the course of the day they lost ground following the weaker euro and equities. The comments of Saudi Arabia's oil minister Ali el-Naimi, saying that the kingdom had enough spare capacity and that the OPEC would discuss to raise its production quota during their next meeting in June, also weighed on quotations. As investors expected new builds in US oil stocks, oil futures have breached first supports which reinforced the downward movement through technical selling orders until the evening. Later, oil futures consolidated near Monday morning's long term lows. Market players wait for important data from the EIA, the IEA and the OPEC later this week, avoiding larger risk positions. Thus, investors reduced some short positions in late trade, slightly supporting oil futures. As markets were predominated by volatility and technical factors, the EIA's report, the sinking US gasoline demand and the forecast of US oil inventories have had but little impact on oil prices at ICE and NYMEX.

ICE Gasoil contract for May delivery settled at 945.25 dollars on Tuesday. This was 6.25 dollars below Monday's settlement. With some 52,100 contracts the traded volume was on average.

The stochastic indicator gives mixed signals this morning. While the crossing of its lines at the Brent charts indicates a buying signal, the indicator currently is neutral for the G.Oil and the WTI, see also technical analysis. The buying signal for the Brent is probably slightly distorted by the market's high volatility and the technical factors. After the insecurities in the past few day's, traders are still trying to consolidate their positions on an appropriate level, avoiding riskier assets. With the IEA's and the OPEC's monthly energy reports due this week and the DOE's data, which are to be published this afternoon, this might continue until the weekend. Technical factors are therefore less important, whereas the supports at the lows of 110.35 dollars (Brent) and at 95.35 dollars (WTI) are still important. If prices fall below these marks, and the WTI slides below 95 dollars, this might trigger new technical selling.

U.S.

Nymex access losing: Oil futures edged lower in Asian trading and on Globex electronic trading platform this morning, as the API's data and the weaker euro prompted investors to take some profit after yesterday evenings highs. Market players are eying the European stock markets and forex, as well as the DOE's data which are to be published this afternoon. The traded volume is above average.

API's: Crude oil +7.8; distillates -2.7; gasoline -4.9 million barrels vs previous week. Refinery utilization +1.1%
DOE's; due out tonight
Forecasts: Crude oil +2.0; distillates +0.4; gasoline -0.3 million barrels vs previous week

Houston (ex-wharf indications 9-5)

380cst $668
180cst $708
MGO $990

New Orleans (ex-wharf indications 9-5)

380cst $678
180cst $713
MGO $990

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

Crude is slowing with WTI -$0.40 Singapore paper is losing again with -$2.75 for 180cst and -$3.60 for 380cst for May, and for June 180 cst -$3.25 and 380cst -$3.95 with MGO contracts May +$0.11 and June +$0.09. The cargo market is slowly turning with 180cst +$0.04, 380cst +$0.30 and MGO -$0.27.

The Singapore fuel oil markets were gaining modestly, around +$0.25 yesterday morning, following a soft crude movement. Demand was said to be robust on lower prices but sellers were reluctant to sell accordingly. The delivered bunker premiums were kept supported around $9.0 above cargo prices. Bunker fuel oil swaps lost up to -$8.5/mt at the front and a few dollars less at the backend of the forward curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $680
180 cst $690
MGO $950

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets continued to weaken this morning. The Eastern arbitrage is at workable levels. The loading and barge congestions are improving.

Rotterdam

Indications for delivered bunkers:

380cst : $ 646
(1.0 %) :$ 702
180cst: $ 672
(1.0 %):$ 705
MGO 0.1%S: $956