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Crude price were slightly weaker in Asian trade this morning as relatively tame sanctions from the West on Russia, the world's top oil producer, over the annexation of the Crimean region of the Ukraine allayed concerns of any abrupt cutoff in supplies.

Oil prices at ICE and NYMEX already ticked lower on Monday morning as market players cut some of the strategic long positions they had raised ahead of the weekend. Quotations fell through first supports even though investors still avoided larger short positions at that time of day a fact that prevented a sharper decline. Profit taking only significantly increased after the USA and the EU had announced their sanctions against Russia. Then, oil markets saw a sharp correction. Monitors think that the sanctions won't have any larger impact on the energy sector and that there won't be any spiral of sanctions between the West and Russia either. Thus, the geopolitical risk premium was considerably reduced. News like the renewed drop of Libya's oil output to 230,000 bpd or the temporary shutdown of the Forcado export terminal in Nigeria have somewhat slipped into the background failing to break oil futures' fall. Quotations settled with considerable losses, with Gasoil hitting a new 4-month low testing its support at 885.00 dollars but failing to breach it.

ICE Gasoil contract for April delivery settled at 889.50 USD on Monday. This was -12.25 USD below Friday's settlement. With some 64,000 deals, the traded volume of the front month was above average.

The stochastic indicator gave a selling signal at the Brent chart as its lines crossed. This signal hasn't been confirmed yet at the Gasoil and the WTI chart. At these charts, the indicator can still be seen as neutral. The RSI is currently trying to surpass 30% at the Gasoil and the WTI chart. If it succeeds in doing so, there will be a buying signal. However, the keysupport at 885.00 Gasoil proved strong yesterday. If this 4-month-low is breached, another technical sell-off might renewedly lead to a decline. So, from a merely technical perspective, there are many possibilities today. Therefore, we assess the technical situation as neutral.

U.S.

Nymex cooling: After having edged slightly higher, oil futures stayed near yesterday's lows in electronic trading this morning. So far, there has been no decisive counter-reaction and short covering, however. The traded volume at NYMEX is slightly above average for this time of day. Traders are now watching the development at stock and forex markets eying today's economic data and keeping an eye on the development of the situation in the Ukraine and Libya.

Houston (ex-wharf indications 18-3)
380cst $590
180cst $668
MGO $989

New Orleans (ex-wharf indications 18-3)
380cst $644
180cst $682
MGO $994

Singapore (delivered indications 18-3)

WTI is bearish with -$0.67. Singapore paper is bearish with -$5.70 for 180cst and -$4.50 for 380cst for Apr, and for May 180 cst -$4.00 and 380cst -$3.85 with MGO contracts being bearish Apr -$1.16 and May -$1.16. The cargo market is bullish with 180 cst +$1.26, 380cst +$1.12 and MGO +$0.87.

The Singapore fuel oil prices were up app. $1.0 during the Asian Platts window yesterday. Market demand was slow initially but picked up in the latter session as crude prices softened. The delivered bunker premiums remained around +$4.5 to $6.0. This morning both markets are trading slightly lower.

380cst $604
180cst $617
MGO $915

Fujairah (delivered indications 18-3)

380cst $610
180cst $642
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $575
(1.0 %) : $642
180cst: $605
MGO 0.1%S: $852