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Brent oil futures tumbled to a nine-month low this morning, as market players awaited new developments from Ukraine and the Middle East. Crude oil prices fell in Asia as support from global tensions dwindled and the market awaited stocks data in the U.S. this week to set the tone.

Oil prices rose in London and New York on Monday morning, testing their first resistance lines that proved strong. In a market without direction due to a lack of economic indicators and fresh fundamental news, oil's rise stayed without dynamics. Consequently the first supports were hit at noon from which the futures rebounded and breached their first resistance lines at the opening of NYMEX session, triggering a series of technically driven buying orders. When the resistances at 885.0 USD (gasoil), 98.45 USD (WTI) and 105.45 USD (Brent) proved strong, oil shed most of its earlier gains. It seems as if some traders, in the absence of fresh news from the geopolitical front, used the situation to bet on spread positions, so analysts. As the most recent U.S. petroleum inventory reports were seen rather bullish the U.S. crude stayed more supported, diminishing the spread between the two benchmarks to less than seven dollars, and ending the session slightly higher while the Brent settled below its first support line.

ICE Gasoil contract for August delivery settled at 883.75 USD on Monday, this is 4.00 USD above Friday's settlement. With some 35,500 deals the traded volume (front month) was below average.

The Stochastic's two lines have crossed at the Brent and the gasoil chart this morning, the indicator giving a selling signal to the market. The RSI at the Brent and the WTI chart, however, is bullish after having breached the 30 line. Because of these contradictory signals the technical constellation is seen neutral this morning, not favouring neither a lasting rise nor fall in prices. Should the RSI indicator at the Brent chart fall back below the 30 line in the course of the day the bearish technical factors would prevail and trigger a technical downward correction.

U.S.

Nymex on avarage: After Friday afternoon's sharp decline, oil futures have edged higher again in electronic trading this morning but gains remained limited up to now. Still, there haven't been any decisive cues so far today. The traded volume at NYMEX is about on average for this time of day. Market participants are now waiting for the development at stock and forex markets. They will keep a close eye on the situation in Iraq, in the Ukraine, in Israel and Libya and on the few European and U.S. indicators as well as the release of the API's figures on U.S. oil stocks tonight.

Houston (ex-wharf indications 12-8)
380cst $585
180cst $672
MGO $965

New Orleans (ex-wharf indications 12-8)
380cst $589
180cst $670
MGO $963

Singapore (delivered indications 12-8)

WTI is losing with -$0.34. Singapore paper is down with -$2.75 for 180cst and -$2.25 for 380cst for Aug, and for Sep 180 cst -$1.75 and 380cst with -$1.50 with MGO contracts Aug losing with -$0.47 and in Sep with -$0.51. The cargo market is losing with 180cst -$10.17, 380cst with -$10.17 and MGO gaining with -$1.59.

380cst $588
180cst $604
MGO $880

Fujairah (delivered indications 12-8)

380cst $605
180cst $637
MGO $980

ARA (Amsterdam - Rotterdam - Antwerp)

(delivered indications 12-8)

Due to the cheaper blendcomponents in the market, the prices of LSFO are lower (similar to hsfo prices) than normal market level. However it’s believed the price of LSFO will return to its usual spread in September.

380cst : $564
(1.0 %) : $571
180cst: $594
MGO 0.1%S: $859