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Crude oil futures retreated this morning, as traders cashed out of the market to lock in gains after prices soared almost € 8.7 a barrel over the past three sessions, the biggest three-day surge since 1990.

After Thursday's and Friday's price rally oil futures traded in a rather narrow range in London and New York on Monday morning. In the United Kingdom, many traders were absent due to the Summer Bank Holiday. Trading volumes and price swings were thus rather insignificant in the first half of Monday. Oil futures edged lower, testing their supports but this didn't trigger any larger moves. The technical constellation remained slightly bullish, as did the news on a possible extraordinary OPEC meeting. Meanwhile, market players were waiting for new EIA statistics on US oil production. This statistic showed that actual US oil output in 2015 was lower previously expected. Even though this buoyed oil prices, futures rather tended to consolidate in the course of the day as oversupplies persist. Prices only rallied in the course of the evening keeping track of the rally they had seen at the end of last week. Whilst oil production at some Canadian oil fields and pipelines pumping crude oil towards the USA were suspended, refinery operator Valero reported irregular flaring at its Port Arthur refinery. However, particularly market players who still held speculative short-positions cut these positions against the backdrop of the announcement that Russia and OPEC would hold talks on Thursday. The combination of bullish news triggered a sharp price rally which was accelerated by technical buying every time resistances were breached. Brent thus rose by approximately 27% in the past three trading days. This is the sharpest rise since the invasion of Kuwait by Iraq in 1990.

ICE Gasoil contract for September delivery settled at 485.75 USD on Monday, this is +8.25 USD above Friday's settlement. With some 52,800 deals the traded volume (front month) was on average.

Oil futures at ICE and NYMEX have breached every single resistance that had limited the upside in the past few weeks and months. Fresh upward potential has thus been generated. Even though the Stochastic indicator and the RSI are moving in overbought territory, pointing to a downward correction, there are no cues yet which might trigger a downward move. That is why the technical constellation can currently be considered neutral. Last week's buying signals have been spent by now. However, if the lines of the Stochastic indicator cross in the course of the day, it would be a clearly bearish signal.

U.S.

Nymex above average: Oil futures remained range bound this morning in Asian and electronic trading after Monday evening's sharp price increase. Investors are waiting for fresh cues. The traded NYMEX volume is far above average at this time of day. Investors are now waiting for the European financial and forex markets to open as well as for the release of today's economic indicators. Besides, the API will release its report on US oil inventories tonight at 10.30 p.m.. The data will be available on our website on Wednesday morning.

Houston (ex-wharf indications 1-9)
380cst $231
180cst $357
MGO $488

New Orleans (ex-wharf indications 1-9)
380cst $235
180cst $287
MGO $466

Singapore (delivered indications 1-9)

WTI is bullish with +$3.02. Singapore paper is up with +$21.50. for 180cst with +$19.45 for 380cst for Sep, and for Oct 180 cst +$19.05 and 380cst with +$18.95 with MGO contracts Sep gaining with +$3.10 and in Oct with +$3.12. The cargo market is bullish with 180cst +$16.51, 380cst with +$15.13 and MGO with +$1.91.

380cst $258
180cst $266
MGO $458

Fujairah (delivered indications 1-9)

380cst $269
180cst $299
MGO $609

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $253
MGO 0.1%S: $458