---

WTI and Brent oil prices resumed their decline this morning, as investors opened fresh short positions in response to OPEC's decision to maintain production last week.

Oil futures at ICE and NYMEX opened weaker on Monday morning. Last Thursday's downward movement, which was due to the OPEC's decision not to cut output, continued yesterday, the futures falling below the lows hit Friday in the morning, marking fresh 5-year-lows during the session. In addition, the disappointing Chinese PMI's weighed on the futures but the OPEC topic still predominates. But the downward movement was halted at midday when the futures had compensated most of the day's losses and breached their first short-term resistances. The important losses of more than 10 percent since last Thursday left traders to cover their short positions in order to hedge against an upward correction which supported prices until late in the evening. The stochastic and the RSI triggered buying signals due to which the technical constellation changed from bearish to bullish and which tempted traders to cover their risk positions until late trading. Finally futures settled considerably higher in London and New York in spite of their 5-year-lows which they had marked in the morning.

ICE Gasoil contract for December delivery settled at 646.75 USD on Monday, this is 10.00 USD below Friday's settlement. With some 36,000 deals the traded volume (front month) was far below average.

The Stochastic and the RSI indicator triggered buying singals yesterday in the afternoon on short covering after prices had hit 5-year-lows. The stochastic indicator's lines crossed at ICE as well as at NYMEX and the RSI at the Brent and the WTI chart breached the 30 line, confirming the Stochastic's buying signals. At the Gasoil chart part of the Stochastic's bullish influence has meanwhile been absorbed as the lines of this indicator are running parallel. The RSI lost its bullish influence as well when changing direction immediately after the breach of the 30 line. We consider the technical constellation as neutral to bullish because of the remaining slightly bullish influence of the stochastic indicator at the Brent and WTI chart. A breach of yesterday's highs which would confirm the stochastic indicator's buying signals would be necessary to continue the upward correction. If these marks can't be sustainably breached however, this would diverge from the Stochastic's signals which would eliminate the indicator's bullish characteristic.

U.S.

Nymex above avarage: Futures are slightly regressive this morning after they increased yesterday until late trading. Currently, there are no fresh signals. The traded volume at NYMEX is considerably above 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 and a series of economic indicators to be released today and especially the publication of US oil inventories as per API which are to be released tonight at 10.30 p.m.

Houston (ex-wharf indications 02-12)
380cst $407
180cst $508
MGO $779

New Orleans (ex-wharf indications 02-12)
380cst $431
180cst $491
MGO $777

Singapore (delivered indications 02-12)

WTI is gaining with +$3.83 Singapore paper is up with +$15.25 for 180cst with +$14.75 for 380cst for Dec, and for Jan 180 cst +$15.25 and 380cst with +$15.50 with MGO contracts Dec bullish with -$3.50 and in Jan with +$3.20. The cargo market is losing with 180cst -$10.77, 380cst with -$11.58 and MGO with -$3.38.

380cst $430
180cst $444
MGO $655

Fujairah (delivered indications 02-12)

380cst $428
180cst $466
MGO $888

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $380
(1.0 %) : $390
MGO 0.1%S: $643