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Brent oil futures sank to the lowest level in more than four years this morning, as ongoing concerns over a glut in world markets continued to drive prices lower.

Oil futures followed the technical and fundamental slight bullish guidelines and orientated upward on Monday morning. By breaching the first resistance zones the RSI at the Brent chart climbed above the 30 line confirming stochastic indicator's bullish signals. The futures increased up to the marks at 85.00 USD Brent and 755.50 USD Gasoil which limited upward movement for the time being. In the afternoon the OPEC denoted again that they won't cut production. Furthermore, the Libyan NOC indicated that their oil fields Sharara and el-Feel will be put into service again at least on Wednesday. Selling orders predominated in the early evening due to the rebound from resistance areas at ICE and NYMEX and therefore futures tested their resistance zones and finally breached them. That's why market changed direction and collapsed in late trading. Buying signals were neutralised and quotations settled lower near their intraday lows.

ICE Gasoil contract for November delivery settled at 742.50 USD on Monday, this is 1.75 USD above Friday's settlement. With some 36,300 deals the traded volume (front month) was below average.

The bullish signals at the chart anaylsis which existed still yesterday morning neutralised in the course of yesterday's late trading. The stochastic indicator at the Brent and the WTI chart already changed direction this morning triggering technical selling signals after its lines crossed. Since Gasoil's indicator lines haven't crossed yet a confirming signal is still missing. The RSI at the Brent chart dropped again below the 30 line and has no chance to give important signals. Brent and WTI breached the lower limits of their short-term upward trends, opening further downward potential which could see the Brent dropping as low as last week's long-term low at 81.63 USD. Therefore, we consider the technical constellation as bearish for the time being, speaking for further downward tests. If Gasoil breaches its support at 732.00 USD and the stochastic indicator's lines cross, technical selling pressure will rise again.

U.S.

Nymex below avarage: Currently, futures consolidate on a low level after yesterday's downward movement. The traded volume at NYMEX is about on average at this time of the day. Market players are waiting for the European financial and the forex markets to open and will eye the situation in the geopolitical hotspots. Today, there are no important economic indicators on the agenda.

Forecast: Crude oil -0.5; Distillates -1.6; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 11-11)
380cst $446
180cst $531
MGO $832

New Orleans (ex-wharf indications 11-11)
380cst $461
180cst $520
MGO $832

Singapore (delivered indications 11-11)

WTI is losing with -$2.14 Singapore paper is down with -$6.10 for 180cst with -$4.50 for 380cst for Nov, and for Dec 180 cst -$6.60 and 380cst with -$6.50 with MGO contracts Nov bullish with -$2.15 and in Dec with -$2.20. The cargo market is gaining with 180cst +$10.75, 380cst gaining with +$11.07 and MGO with +$2.38.

380cst $485
180cst $502
MGO $740

Fujairah (delivered indications 11-11)

380cst $480
180cst $525
MGO $932

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $443
(1.0 %) : $453
MGO 0.1%S: $731