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Crude oil futures extended gains this morning, after rallying 11% over the past two sessions, as investors closed out bets on lower prices after data showed the number of U.S. oil drilling rigs had fallen by the most in nearly 30 years last week.

Technical analysis indicated a bullish direction with further upward tests on Monday morning after Friday's price rally. Analysts don't see a change in the fundamental market situation but some market players fear to miss the moment where futures build a bottom. Therefore, they tend to liquidate their short positions. An extraordinary number of US oil rigs have been shut down last week which triggered the price rally in late trading on Friday. Technical buying signals strengthened the bullish tendency on Monday, especially after Brent surpassed its 53.00 USD mark breaching the upper limits of its long-term downtrend. Futures were pushed upwards to their highest levels since the beginning of January due to automatic short covering. Oil futures returned from their Monday's highs in the afternoon due to disappointing US economic indicators but the price level stayed strong. The strikes of the "United Steelworkers" union at many refineries in the United States supported oil product futures. In general, futures expanded their Friday's gains on Monday and settled on their highest level since one month in London and New York.

ICE Gasoil contract for February delivery settled at 512.25 USD on Monday, this is 34.00 USD above Friday's settlement. With some 48,600 deals the traded volume (front month) was below average.

Brent triggered buying signals on Friday and Monday by surpassing several important resistances and triggered at the same time further technical upside by breaching the upper limits of its long-term downtrend. The stochastic indicator at ICE and NYMEX stays bullish while the buying signals are rather expected to be partly absorbed already. We consider the technical constellation as neutral to bullish due to the fresh upside. The decisive factors will probably be yesterday's highs and the long-term downtrend at the WTI chart which is still intact unlike at the Brent chart. If these marks are breached in the course of the day this will reinforce bullish signals again and the technical upward movement which was to be seen within the last few days will continue.

U.S.

Nymex above average: The traded volume at NYMEX is far above average at this time of the day. Market players are waiting for the European financial and the forex markets to open and the economic indicators which are to be released today and for the US oil inventory data as per API late this evening.

Houston (ex-wharf indications 3-2)
380cst $279
180cst $374
MGO $582

New Orleans (ex-wharf indications 3-2)
380cst $287
180cst $340
MGO $571

Singapore (delivered indications 3-2)

WTI is gaining with +$4.11. Singapore paper is up with +$22.10 for 180cst with +$23.05 for 380cst for Feb, and for Mar 180 cst +$22.25 and 380cst with +$23.15 with MGO contracts Feb bullish with +$3.65 and in Mar with +$3.53. The cargo market is bullish with 180cst +$14.00, 380cst with +$13.43 and MGO with +$2.24.

380cst $304
180cst $329
MGO $514

Fujairah (delivered indications 3-2)

380cst $306
180cst $326
MGO $796

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $258
MGO 0.1%S: $493