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Since new decisive cues were lacking this morning, oil futures in London and New York have hardly changed so far. Market participants already closely eye the release of the first US oil inventories data in 2014. Meanwhile there is no news regarding Libya, Iraq and South Sudan. Even though Iraq's oil installations are well protected, the increasing intensity of the fights also raises the risk of the installations being damaged. As to Libya, the country's most important export terminals are still closed whereas production at the deblocked oil fields is gaining momentum.

Many market players returned from their Christmas vacation on Monday. The cold snap in the USA, particularly hitting the Midwest and the East Coast, have still kept some of New York's traders from their desks, however. As expected, investors covered some of their short positions in the first half of the day, bolstering oil prices until the early afternoon. Reports on a renewed attack on a Yemeni pipeline and news on fights between Iraqi troops and members of al-Qaida also fostered prices. Still, these news particularly fostered Gasoil and Brent futures at ICE. Since these reports were seen as only slightly bullish, however, and as the technical constellation didn't provide any further buying signals oil futures upward potential waned in the course of the afternoon. Disappointing economic data and a sharp rise in oil production at Libya's al-Sharara oil field are to have slightly weighed on oil markets. In late trade, oil futures erased earlier gains finishing with new lows. The WTI contract was a tad lower than the other futures.

ICE Gasoil contract for January delivery settled at 910.25 USD on Monday. This was ±0.00 USD compared to Friday's settlement. With some 45,600 deals the traded volume was below average.

The lines of the stochastic indicator at ICE as well as at the WTI chart have already met. However, there will only be a bullish cue if the lines of the indicator clearly cross. This has not been the case yet, however. The RSI is still below 30% in oversold territory but hasn't given any buying signal so far, either. The oversold situation favours technical buying even though clear buying signals are still lacking. Consequently, we assess the technical constellation as neutral this morning.

U.S.

Nymex gaining: Oil markets didn't show any new direction in Asian trading this morning and so futures at ICE and NYMEX were trading close to yesterday's settlement levels. Investors are now eying the opening of stock markets waiting also for new cues from forex markets as well as from today's economic indicators. Market players will also keep an eye on the API's report on US oil inventories due tonight at 10.30 p.m.

Survey: Crude oil -3.4; distillates +2.0; gasoline +2.5 million barrels vs previous week

Houston (ex-wharf indications 31-12)
380cst $608
180cst $671
MGO $1005

New Orleans (ex-wharf indications 31-12)
380cst $621
180cst $659
MGO $1008

Singapore

WTI is losing slightly -$0.55. Singapore paper is starting to gain with +$0.50 for 180cst and +$2.00 for 380cst for Jan, and for Feb 180 cst +$0.50 and 380cst +$0.75 with MGO contracts Jan +$0.25 and Feb +$0.15. The cargo market is bearish still with 180 cst -$4.95, 380cst -$4.98 and MGO -$0.99.

The Singapore fuel oil markets came off by $5.0 during the Asian Platts window yesterday tracking the lower crude values. The delivered bunker premiums were seen at $7.5-6.0 as the lower outright prices also lured in some buying interests. This morning markets are trading higher.

380cst $600
180cst $608
MGO $905

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $574
(1.0 %) : $599
180cst: $602
MGO 0.1%S: $ 897