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U.S. oil futures edged lower this morning, as investors began to focus on the Federal Reserve's upcoming policy meeting as well as weekly supply data from the U.S.

After Friday evening's price surge, traders at oil markets took some profits on Monday morning. In the course of the morning, oil futures slightly retreated breaching first supports. Late Friday evening, market players had raised their long positions in order to hedge the risk of more sanctions against Russia ahead of the weekend. Up to now, the sanctions haven't been imposed on complete Russian economic sectors yet, which is why some traders cut their long positions again on Monday. In the course of the day, reports on a significant oversupply at the crude oil market weighed on futures. Selling pressure thus persisted in the afternoon sending Brent lower within its side trend. The contract stopped short of the psychological support at 107.00 USD, however. After Gasoil had broken below its uptrend (Friday), it re-entered this trend on Monday. In all, trade remained rather subdued, however, as the low volumes show. Brent's rebound from the 107.00 USD support lead to a slight correction but still, they settled with losses, see tickcharts.

ICE Gasoil contract for August delivery settled at 889.25 USD on Monday, this is -2.75 USD below Friday's settlement. With some 29,300 deals the traded volume (front month) was far below average.

The stochastic indicator gives a first selling signal at the Gasoil chart but at the Brent chart the lines haven't crossed yet. At the WTI chart, the lines of the indicator are parallel which is why the indicator can be interpreted as neutral at this chart. Brent is still moving within its trend to the side that has preset the trading range for the North Sea crude oil contract for 1.5 weeks by now, see also technical analysis. This trend is likely to limit the down and the upside again today. Its upper limit is at 108.60 USD, whereas its lower limit is at 106.75 USD. From a merely technical perspective, the selling signal at the Gasoil chart is favoring tests of the downside. As long as the selling signal isn't confirmed by another one, for example at the Brent chart (stochastic), the technical constellation is but slightly bearish.

U.S.

Nymex below avarage: Oil futures have moved within a narrow range in early morning trade today as there were no new cues. The traded volume at NYMEX is slightly below average for this time of day. Market players will focus on the EU's new sanctions against Russia today eying as well the development at stock and forex markets. They will also keep monitoring the situation in Iraq, Ukraine, Israel and Libya and the economic indicators due today (see economic calendar). Moreover, the API is going to release its data on US oil inventories at 10.30 p.m. tonight.

Houston (ex-wharf indications 29-7)
380cst $591
180cst $672
MGO $979

New Orleans (ex-wharf indications 29-7)
380cst $595
180cst $669
MGO $970

Singapore (delivered indications 29-7)

WTI is down with -$0.54. Singapore paper is back up with +$2.00 for 180cst and +$2.00 for 380cst for Aug, and for Sep 180 cst +$1.45 and 380cst with +$2.45 with MGO contracts Aug gaining with +$0.57 and in Sep with +$0.61. The cargo market is losing with 180cst +$0.05, 380cst with -$1.46 and MGO with -$0.09.

The Singapore market was closed yesterday on public holiday and reopens today. Bunker fuel oil swaps lost app.$2.5/mt for the front month contracts both for Rotterdam and Singapore papers. The back end of the forward curve was slightly weaker, assessed app. $3.5/mt down.

380cst $595
180cst $605
MGO $883

Fujairah (delivered indications 29-7)

380cst $635
180cst $658
MGO $989

ARA (Amsterdam - Rotterdam - Antwerp)

(delivered indications 29-7)
380cst : $578
(1.0 %) : $592
180cst: $610
MGO 0.1%S: $871