---

The price of a barrel of Brent crude oil fell below $100 for the first time in nine months Tuesday as a selloff that started Monday continued. Oil's decline—the front-month Brent crude oil contract on London's ICE futures exchange was down 95 cents at $99.68 a barrel in the morning—follows a sharp fall in the price of gold and other precious metals in recent days and a wider drop in commodity prices that has affected everything from agricultural commodities to copper prices. The front-month May light, sweet crude contract on the New York Mercantile Exchange was trading 66 cents lower at $88.05 a barrel. Crude-oil futures fell sharply during early Asian trade, extending losses after they settled Monday at their lowest this year in floor trade as sentiment soured on weak economic data from the U.S. and China.

After Friday’s hefty losses and only a s short phase of recovery in late U.S. trade, oil futures continued to slip in early Asian trading on Monday, at times falling even below last week’s lows. Disappointing data out of China, especially the figures on industrial production and the GDP for Q1, which had been released at night, again stoked concerns over oil demand growth in the second biggest economy worldwide. As the forex market did not provide any signals at this point and the European stock markets also had to suffer some losses right at the opening, not even the strong support at 88.00 USD (WTI), 100.60 USD (Brent) and 850.00 USD (G.Oil) could prop oil prices, the more so as the technical analysis did not give off any bullish signals yesterday. Market players then became even more concerned when NYMEX floor trade started. Equally disappointing U.S. indicators as in China further pressured oil prices which breached their first support, however, not sustainably at first. The downside trend only continued in late trade in the wake of slumping U.S. stocks. After gold futures dropped by 9% to a two-year low, the Dow Jones closed 266 points down at 14599 points, marking its greatest single-day losses since November 2012. Moreover, WTI slid to the lowest level this year and ICE Brent, which was still struggling at the psychological mark of 100 USD in U.S. trade, plummeted to 98.00 USD in Asian trading early this morning, its lowest price level since July 2012.

ICE Gasoil contract for May delivery settled at 847.25 USD on Monday. This was -8.75 USD above Friday's settlement. With some 66,400 deals, the traded volume was above average.

The Stochastic remains bearish at crude charts this morning although the selling signals already date two days back. The indicator has turned neutral again for G.Oil. Moreover, the markets still are clearly oversold. Even though oil futures breached the support lines of the steep, short downward trend channels and marked new annual lows, we see a bear market this morning since the bulk of the downward potential is largely used up and the oversold market situation favours an upward correction.

U.S.

Nymex bearish: Pressured by falling stocks, oil futures continued their downside trend in early Asian trading this morning. Furthermore, a bomb attack during the famous Boston Marathon had upset the market at night. But as the Nikkei 225 could pare its losses and the euro is trading up, the oil market is currently recovering. Trade volume at NYMEX is far above average for this time of day. Investors are now waiting for the European markets to open, for fresh signals from forex trading as well as for a series of economic data to be released in the USA and the euro zone, particularly eying the figures on the U.S. housing market and industrial production.

Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:0 (DOE)
Forecast: Crude oil + 0.8; distillates -0.4; gasoline +0.7 million barrels vs previous week

Houston (ex-wharf indications 15-04 )
380cst $587
180cst $668
MGO $960

New Orleans (ex-wharf indications 15-04)
380cst $585
180cst $643
MGO $960

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

Crude is bearish , dropping with -$1.27. The paper market is dropping even more, with April 180cst -$8.75 and for 380cst -$10.20, and May contracts with 180cst -$8.75, 380st -$9.50 The cargo market is following with 180cst -$-.97, and 380cst -$11.43 and MGO -$2.78.

The Singapore fuel oil markets fell more than $10.0 during the Platts window on the start of the week tracking the weaker crude values. The Asian fuel oil crack continued to narrow as fuel oil values lagged. The delivered bunker premiums were seen $8.5-7.0 above cargo prices. This morning the markets are trading down.

High premiums for prompt deliveries.
380 cst $590
180 cst $598
MGO $840

Fujairah (delivered indications 16-04)

380cst $597
180cst $648
MGO $955

ARA (Amsterdam - Rotterdam - Antwerp)

Due to high demand, a lot of suppliers are fully booked till 19th, especially for hsfo due to congestion at refineries. They do expect it to be solved within couple of days.

Indications for delivered bunkers:
380cst : $572
(1.0 %) :$ 582
180cst: $ 600
(1.0 %):$ 610
MGO 0.1%S: $ 825