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Nymex crude prices fell during Asian trading hours this morning as the markets tried to balance the concerns of the slowdown in emerging economies with the strength of stock markets in the U.S. and conflicts in the Middle East.

Oil futures ticked lower on Monday morning retreating until noon. The slightly bearish technical constellation favored profit taking at that time of day whereas the uptrend remained intact and market fundamentals are still bullish given the output losses in Libya and South Sudan. Particularly WTI proved rather volatile in the afternoon surging now and again as investors renewedly expected a draw in Cushing crude oil stocks. NYMEX Heating Oil showed but little upward potential as traders took profits after the rally the contract showed last week. Whilst WTI shed its gains in late evening trade and over night, Gasoil and Brent remained steady settling near their highs. Analysts like Phil Flynn at Price Futures Group say that this is due to geopolitical risks which are priced in supporting the benchmark blend Brent. The spread between the European and the US crude oil sorts temporarily narrowed but widened to more than 8 dollars again, at last.

ICE Gasoil contract for March delivery settled at 934.25 USD on Monday. This was 4.50 USD above Friday's settlement. With some 48,000 deals, the traded volume was slightly below average.

The bearish impact of the stochastic indicator has meanwhile been spent as the lines of the indicator reapproached at the Gasoil chart. At the Brent chart, they already met. Accordingly, the stochastic indicator can be interpreted as neutral. The RSI currently doesn't give any new signal either hovering above 70%. The uptrends remain intact providing some potential for profit taking. As long as futures don't fall below these trends, a sharper downward correction is unlikely - from a merely technical point of view.

U.S.

Nymex cooling: In the early morning oil markets didn't show any clear direction. Quotations remained near yesterday's settlement levels. The traded volume at NYMEX is below average for this time of day. Market players eye the development at the stock and forex markets and wait for today's economic data.

Forecasts: Crude oil +1.3; Distillates -1.5; Gasoline -1.0 million barrels vs previous week.

Houston (ex-wharf indications 25-2)
380cst $609
180cst $687
MGO $1024

New Orleans (ex-wharf indications 25-2)
380cst $637
180cst $667
MGO $1026

Singapore (delivered indications 25-2)

WTI is bearish with -$0.43. Singapore paper remains bullish with -$0.40 for 180cst and +$0.50 for 380cst for Mar, and for Apr 180 cst -0.10 and 380cst +$0.60 with MGO contracts being bearish Mar -$0.09 and Apr -$0.08. The cargo market is bearish with 180 cst -$3.72, 380cst -$3.72 and MGO -$0.83.

380cst $620
180cst $630
MGO $945

Fujairah (delivered indications 25-2)

380cst $612
180cst $642
MGO $985

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $592
(1.0 %) : $642
180cst: $622
MGO 0.1%S: $ 887