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Crude oil prices gained in Asian trade on Monday as tension between Russia and the West over the Ukraine escalated.

After oil futures at ICE had broken below their uptrends they still showed a softer tendency on Friday morning. Quotations tested their downward potential falling below Thursday's lows. However, the euro surged as data showed that inflation in the eurozone stabilized at 0.8%. Investors had expected inflation to have declined to +0.7%. The steadier euro limited losses at oil markets giving investors out of the eurozone a chance to buy at a cheaper price. Quotations at ICE stabilized near their lows before traders once again took some profits ahead of the weekend. Since market players chiefly bet on sinking prices, however, given oil futures decline in the course of last week, profit taking in this case meant that traders covered their short positions. This made prices rise in the evening, the more so as the stronger euro bolstered oil futures. At night quotations finished near Friday's intraday-highs, with the spread between Brent and WTI having continued narrowing. At that time the spread amounted to some 6.30 dollars. At the weekend, the situation in the Ukraine increasingly degenerated. Whilst the USA threatened Russia with consequences, Moskow is blackmailing the Ukraine and the USA with its gas deliveries. The situation on the Crimean peninsula thus made investors price in a risk premium. Therefore, oil futures surged at the beginning of this week.

ICE Gasoil contract for March delivery settled at 920.75 USD on Friday. This was +2.50 USD below Thursday's settlement. With some 40,300 deals, the traded volume was slightly below average.

Whilst the RSI is neutral, the lines of the stochastic indicator have crossed at ICE as well as at NYMEX charts and so the indicator has given a buying signal. Given this buying signal, the technical constellation is rather bullish this morning. However, the technical constellation is likely to slip into the background since the fundamental situation (Ukraine) dominates the market at the beginning of the week.

U.S.

Nymex bullish: Oil futures were pushed to new year-highs in electronic trading this morning by the latest events happening in the Ukraine. The traded volume at NYMEX is unusually high for this time of day. Traders are now monitoring the development at stock and forex markets waiting for today's economic data and the development of the situation in the Ukraine.

Houston (ex-wharf indications 3-3)
380cst $607
180cst $687
MGO $1019

New Orleans (ex-wharf indications 3-3)
380cst $636
180cst $669
MGO $1023

Singapore (delivered indications 3-3)

WTI is bullish with +1.91. Singapore paper is bullish with +$13.25 for 180cst and +$12.50 for 380cst for Mar, and for Apr 180 cst +$12.95 and 380cst +$12.95 with MGO contracts being bearish Mar +2.00 and Apr +$2.20. The cargo market is bearish with 180 cst -$2.04, 380cst -$2.74 and MGO -$0.59.

380cst $610
180cst $625
MGO $933

Fujairah (delivered indications 3-3)

380cst0 $610
180cst $640
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $596
(1.0 %) : $652
180cst: $626
MGO 0.1%S: $896