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U.S. crude oil futures traded near a six-year low this morning, as market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.

Some market players took profit from their short positions on Monday morning after the strong price drop on Friday. Oil futures at ICE climbed up to their resistances at 55.00 USD Brent and 520.00 USD Gasoil which stayed strong due to the fundamental and technical bearish overall situation. Bearish factors predominated in the course of the afternoon due to which prices considerably eased. The disappointing US economic indicators favored the downward movement while the main reason for yesterday's decrease is the bearish market situation which was confirmed by the monthly reports of the EIA and the IEA last week. The OPEC report which was released yesterday wasn't able to change the situation even though the cartel revised up its global demand forecast for 2015. WTI was the first to drop in the afternoon only being thwarted by its support at 42.85 USD. The expiry of Brent's front month was present in late trading on Monday. This triggered some short covering preventing further profit taking. This countermovement limited losses but WTI marked a fresh 6-year-low in the course of the day, however.

ICE Gasoil contract for April delivery settled at 509.75 USD on Monday, this is -14.00 USD below Friday's settlement. With some 64,300 deals the traded volume (front month) was far above average.

Yesterday's selling signals of the stochastic indicator at the Gasoil and the Brent chart have been absorbed due to the countermovement during the night. Therefore, the stochastic indicator is to be interpreted as neutral again. Meanwhile, the oil market stays at its oversold level while there are still no technical buying signals to be seen. We consider the technical constellation as neutral this morning. But downside margins which reach even the level of Monday's lows are expected to stay. If these lows are breached sustainably a fresh selling signal would be triggered.

U.S.

Nymex far above average: Oil futures returned from their Monday's lows due to last night's short covering consolidating on the current level. The traded volume at NYMEX is far above average at this time of the day. Investors are waiting for the European financial and the forex markets to open, for news concerning Iranian nuclear negotiations, for the OPEC's monthly report and for some economic indicators that are on the agenda today.

Houston (ex-wharf indications 17-3)
380cst $307
180cst $464
MGO $601

New Orleans (ex-wharf indications 17-3)
380cst $316
180cst $375
MGO $634

Singapore (delivered indications 17-3)

WTI is losing with -$0.35. Singapore paper is down with -$0.70 for 180cst with -$1.25 for 380cst for Mar, and for Apr 180 cst -$0.80 and 380cst with -$1.35 with MGO contracts Mar losing with -$0.21 and in Apr with -$0.23. The cargo market is bearish with 180cst -$15.38, 380cst with -$15.15 and MGO bearish with -$2.78.

380cst $310
180cst $331
MGO $524

Fujairah (delivered indications 17-3)

380cst $320
180cst $351
MGO $739

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $280
MGO 0.1%S: $502