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Oil futures were down for the third consecutive session this morning, as investors piled on to their short positions in anticipation of lower prices.

The fundamentally bearish estimate and the slightly bearish technical signals indicated downward tests already on Friday morning. The futures tested their downside again and again but were limited by the support at 617.00 USD Gasoil. There were no further clear technical signals and that's why slight short covering was caused during the consolidation before the weekend. Especially the positive US labour market data which was released in the afternoon triggered some buying interest which wasn't able to stand up to the bearish overall situation. Saudi Arabia's announcement on Thursday, that it will reduce prices for crude oil deliveries in January to the United States and Asia, left a permanent mark. Finally, futures settled considerably lower on Friday. The selling pressure triggered further downward potential last night so that Gasoil breached its so far long-term lows and fell to 610.00 USD which is its lowest mark since July 2010.

ICE Gasoil contract for December delivery settled at 618.50 USD on Friday, this is 3.50 USD below Thursday's settlement. With some 52,800 deals the traded volume (front month) was about on average.

Meanwhile, the stochastic indicator's lines are bearish at ICE and NYMEX confirming Friday's selling signal of Gas oils stochastic indicator. New downside was triggered at the Gasoil chart by breaching its so far long-term lows from last Monday. Brent and WTI weren't able yet to breach its long-term lows but the selling signals indicate a test of this mark. Therefore, we consider the technical constellation as bearish. Last week's long-term lows are expected to be important for a fresh technical selling wave. Fresh downward potential will be triggered if the indicators at the Brent and the WTI chart sustainably breach their long-term lows.

U.S.

Nymex above avarage: Oil futures at ICE and NYMEX slightly increased this morning after they marked near their long-term lows last night. The traded volume at NYMEX is 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. There are no more economic indicators on the agenda today.

Houston (ex-wharf indications 08-12)
380cst $385
180cst $497
MGO $740

New Orleans (ex-wharf indications 08-12)
380cst $411
180cst $479
MGO $753

Singapore (delivered indications 08-12)

WTI is losing with -$1.04 Singapore paper is down with -$6.75 for 180cst with -$7.75 for 380cst for Dec, and for Jan 180 cst -$7.75 and 380cst with -$7.25 with MGO contracts Dec bearish with -$1.15 and in Jan with -$1.12. The cargo market is losing with 180cst -$7.08, 380cst with -$6.20 and MGO with -$1.12.

380cst $410
180cst $425
MGO $635

Fujairah (delivered indications 08-12)

380cst $405
180cst $450
MGO $870

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $354
(1.0 %) : $364
MGO 0.1%S: $603