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Crude oil prices fell further in Asia on Monday after a disappointing manufacturing survey from China.

Market fundamentals had already pointed to further tests of the downside on Friday morning, whereas the technical constellation didn't provide any fresh cues for oil markets. Futures in London and New York kept track of their losses, breaching first supports. WTI even dropped below the MA 7, generating more downward potential. The fact that the euro rallied compared to the dollar in the early afternoon temporarily limited losses. However, oil futures renewedly approached earlier lows in the course of the afternoon. Investors were waiting for the Baker Hughes report on active US oil rigs. This report showed a rise in active US oil rigs for the second consecutive time, adding to selling pressure - particularly on Brent and WTI. Eventually, oil prices hit new lows. This renewed decline was also favoured by the fact that the euro shed some of its gains. Oil futures settled with losses, with Brent hitting a 6-month-low. The last time the contract was as cheap as on Friday, was on February 2nd.

ICE Gasoil contract for August delivery settled at 488.75 USD on Friday, this is 5.00 USD below Thursday's settlement. With some 41,800 deals the traded volume (front month) was below average.

The lines of the Stochastic indicator have crossed at the Brent, the WTI and the Gasoil chart by now, giving a selling signal at all of the three charts. Whilst Gasoil is still trying to break below its 480.00 USD support, Brent and WTI have already fallen below Friday's lows, generating more downward potential. The combination of fresh selling signals and the drop below Friday's lows makes the technical constellation bearish this morning. This indicates more tests to the downside. If Gasoil breaks below 480.00 USD, selling pressure should increase.

U.S.

Nymex on average: After Friday's hefty losses, oil futures slightly recovered in electronic trading this morning, pulling back from the losses they had posted overnight. This upward correction is chiefly due to short-covering as market fundamentals are still bearish. The traded volume at NYMEX is above average at this time of day. Market participants are now waiting for the European financial and forex markets to open as well as on the economic indicators on the agenda today.

Houston (ex-wharf indications 3-8)
380cst $269
180cst $465
MGO $529

New Orleans (ex-wharf indications 3-8)
380cst $280
180cst $353
MGO $493

Singapore (delivered indications 3-8)

WTI is bearish with -$1.80. Singapore paper is down with -$9.50 for 180cst up with -$10.00 for 380cst for Aug, and for Sep 180 cst -$10.25 and 380cst with -$9.25 with MGO contracts Aug losing with -$1.30 and in Sep with -$1.28. The cargo market is bearish with 180cst -$5.21, 380cst with -$6.881 and MGO with -$0.78.

380cst $283
180cst $293
MGO $458

Fujairah (delivered indications 3-8)

380cst $286
180cst $324
MGO $684

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $266
MGO 0.1%S: $450