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New York-traded crude oil futures rose on this morning despite growing concerns over the economic outlook in emerging markets and the impact on future oil demand. On the NYMEX, light sweet crude futures for delivery in March rose 0.21% to USD97.10 on Monday in Asian trading. In the earlier session, NYMEX oil traded between USD 96.93 and USD 97.09. U.S. oil futures were likely to find support at USD95.12 a barrel, the low from January 22 and resistance at USD97.84 a barrel, the high from January 23.

On Friday morning, oil futures at ICE and NYMEX sharply declined breaching several supports. This generated even more technical stop-loss selling orders. The stochastic indicator also gave a selling signal adding to technical selling pressure at that time. Thursday's news regarding a ceasefire in South Sudan also still showed a slightly bearish impact on oil markets. The spread between Brent and WTI once again turned into focus as the Keystone XL pipeline had started its crude oil deliveries from Cushing to the US Gulf coast on Wednesday. WTI's price discount to the North Sea benchmark crude temporarily dropped below 10 dollars. This prompted market players to take some profits from their spread bets in the afternoon, however. Apart from this, the renewed cold snap in the USA sent NYMEX Heating Oil contracts higher. This also fostered ICE futures. Whilst Brent and Gasoil thus were able to make up for their earlier losses in the evening, WTI was still weighed down by profit taking from spreadbets - settling in the red.

ICE Gasoil contract for February delivery settled at 921.75 USD on Friday. This was -0.75 USD below Thursday's settlement. With some 50,300 deals, the traded volume was on average.

The stochastic indicator temporarily gave a selling signal on Friday which accelerated oil futures' decline in the first half of the day. After the counter reaction oil markets saw on Friday evening the bearish signal at ICE charts has already waned again, however. Currently, the stochastic indicator is bearish at the Brent and the WTI chart pointing to tests of the downward potential. Therefore, we assess the technical situation as neutral to bearish this morning. At the moment, investors wait for another selling signal from the RSI (triggered when the indicator falls below 70%) or from the stochastic indicator at the gasoil chart. At this chart, the lines of the stochastic indicator haven't crossed yet. If this happens in the course of the day, the overbought market situation would favor a downward move and technical selling pressure would increase.

U.S.

Nymex neutral: After Friday's late highs oil futures at ICE have edged lower again in early electronic trading this morning. However, there are no new cues so far. The traded volume at NYMEX is slightly above average for this time of day. Market players are now monitoring the development at stock markets waiting as well for new cues from forex markets. They will also keep an eye on the situation in Libya, Iraq and South Sudan. Moreover, they will look ahead to today's economic data.

Houston (ex-wharf indications 27-1)
380cst $593
180cst $673
MGO $977

New Orleans (ex-wharf indications 27-1)
380cst $606
180cst $660
MGO $990

Singapore

WTI is cooling, slightly dropping with -$0.66. Singapore paper is back on a neutral track with -$0.75 for 180cst and +$0.75 for 380cst for Feb, and for Mar 180 cst -0.85 and 380cst -$0.10 with MGO contracts slightly bullish Feb +$0.2- and Mar +$0.11. The cargo market is bearish with 180 cst -$3.79 , 380 cst +$0.42 and MGO -$0.74.

The Singapore fuel oil markets closed mixed during the Platts window last Friday ranging between -$4.0 and +$0.5. The fuel oil cargo market especially the bunker grade 380cst remains tight as cargo premium strengthened. The delivered bunker premiums were between +$7.5 to +$12.0 above cargo prices. This morning both markets are trading higher.

380cst $617
180cst $630
MGO $921

Fujairah (delivered indications 27-01)

380cst $626
180cst $650
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $560
(1.0 %) : $590
180cst: $590
MGO 0.1%S: $ 885