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Oil prices fell this morning as traders focused on whether Iran and six world powers would reach a deal that could add fuel to an already oversupplied market if sanctions against Tehran are lifted.

Oil futures at ICE and NYMEX started on a high level on Friday morning. Analysts were of the opinion that Thursday's strong upward movement was only an overreaction as a closing of the seagate Bab el-Mandeb in the Gulf of Aden is rather improbable. Therefore, no losses or delays are expected in oil exports from the Gulf region to Europe. A first selling signal was triggered by the stochastic indicator at the WTI chart in the early morning. Therefore, oil futures tested several supports in the course of the day which stayed strong until the evening when they were breached sustainably. Further technical selling orders have been triggered by the breach of the supports at 57.55 USD Brent and 540.00 USD Gasoil. This caused a strong price decline in late trading. Oil futures at ICE and NYMEX absorbed their Thursday's upward movement and settled considerably lower on Friday evening in London and New York.

ICE Gasoil contract for April delivery settled at 541.00 USD on Friday, this is -4.50.00 USD below Thursday's settlement. With some 49,700 deals the traded volume (front month) was below average.

The stochastic indicator at the WTI chart triggered a selling signal on Friday morning. This signal was confirmed at the Brent and Gasoil chart as the lines of the stochastic indicators crossed sustainably. Oil futures at ICE and NYMEX tried to breach their short-term upward tendency of the last week. Therefore, we consider the technical constellation as bearish this morning. If contracts breach the lower limits of their downtrends technical selling pressure would increase again.

U.S.

Nymex far above average: Oil futures stay weak in early trading testing their supports. 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 the development in Yemen and the nuclear negotiations with Iran and for today's economic indicators.

Houston (ex-wharf indications 30-3)
380cst $310
180cst $464
MGO $591

New Orleans (ex-wharf indications 30-3)
380cst $327
180cst $377
MGO $608

Singapore (delivered indications 30-3)

WTI is losing with -$1.60. Singapore paper is down with -$8.75 for 180cst with -$9.25 for 380cst for Apr, and for May 180 cst -$9.50 and 380cst with -$9.80 with MGO contracts Apr losing with -$1.07 and in May with -$1.12. The cargo market is bearish with 180cst -$7.74, 380cst with -$7.62 and MGO bearish with -$1.12.

380cst $320
180cst $338
MGO $538

Fujairah (delivered indications 30-3)

380cst $330
180cst $351
MGO $738

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $298
MGO 0.1%S: $522