---

Crude oil futures declined for the third consecutive session this morning, as talks between western diplomats and Iran are set to resume later in the day amid hopes of reaching an agreement over Tehran’s nuclear program before Tuesday night's deadline.

Market players priced out the price jump which was triggered by fights in Yemen on Friday evening by a downward correction. Oil futures started weak after the weekend due to the bearish technical constellation and rather bearish fundamentals testing their downside on Monday. There were hardly any important news while oil futures breached their Friday's lows however. Further considerable losses were missing due to the market players who stayed cautious due to the possible upcoming framework agreement in nuclear negotiations between the Iran and the group 5+1 in Lausanne. The supports at € 482.04 Gasoil and € 43.67 WTI limited the downward movement while Brent has a temporary support at € 50.54. Genscape announced again a considerable increase in US stocks in Cushing on Monday evening hardly influencing oil futures. Short covering triggered a slight upward movement while oil futures finally settled lower in London and New York.

ICE Gasoil contract for April delivery settled at € 482.95 on Monday, this is -€ 12.37 below Friday's settlement. With some 36,800 deals the traded volume (front month) was below average.

The stochastic indicator indicated selling signals on Monday morning supporting the downward movement at ICE and NYMEX. The indicator even dropped below its 50 line confirming once again the bearish direction while the RSI stays neutral without any chance to trigger any signal. This indicates downtests but Monday's lows are expected to limit downward potential for the moment. Therefore, we consider the technical constellation as neutral to bearish this morning as long as these marks aren't breached.

U.S.

Nymex far above average: Short covering supported oil futures on Monday evening but the tendency stays weak this morning and oil futures lost again some ground. 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 31-3)
380cst $312
180cst $464
MGO $592

New Orleans (ex-wharf indications 31-3)
380cst $320
180cst $378
MGO $603

Singapore (delivered indications 31-3)

WTI is losing with -$0.87. Singapore paper is down with -$6.00 for 180cst with -$6.75 for 380cst for Apr, and for May 180 cst -$5.65 and 380cst with -$5.75 with MGO contracts Apr losing with -$1.20 and in May with -$1.23. The cargo market is bearish with 180cst -$9.59, 380cst with -$9.32 and MGO bearish with -$0.99.

380cst $315
180cst $333
MGO $531

Fujairah (delivered indications 31-3)

380cst $324
180cst $343
MGO $737

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $298
MGO 0.1%S: $513