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Oil prices edged closer to 2015 lows on Monday after OPEC failed to agree on a production curb to stem sliding prices and a stronger dollar made it more expensive to hold crude positions.

Last week, investors were awaiting OPEC's decision on its output quota. This decision was due on Friday. Due to the insecurity that predominated the market ahead of this decision, trading was very volatile. On Friday morning market players covered their short positions which sent oil futures at ICE and NYMEX higher. Prices consolidated on a high level until some OPEC delegates spread news on the cartel's production strategy. During Friday's regular OPEC meeting the envoys of the member states failed to agree upon an output cut and so, oil prices slumped in the early afternoon. The decision not to cut the production quota will presumably exacerbate the surplus in crude oil in the first quarter of 2016, when Iran plans to raise its production and exports. Whilst ICE Gasoil slipped back below 400.00 USD, Brent dropped below 43.00 USD and WTI broke below the psychologically important mark of 40.00 USD. This generated more downside for oil futures. However, oil futures didn't seize the fresh downward potential on Friday. As expected, oil prices remained lower after the OPEC's decision, ending the day near the lows they had hit earlier on. In terms of market fundamentals selling pressure remained high, though, which is why WTI has already broken below Friday's low this morning.

ICE Gasoil contract for December delivery settled at 395.75 USD on Friday, this is +0.50 USD above Thursday's settlement. With some 38,400 deals the traded volume (front month) was below average.

On Friday the Stochastic indicator gave off clear buying signals at ICE and NYMEX charts. This morning, however, the lines of the indicator are converging at the Brent and the WTI charts. That is why the indicator can be assessed as neutral again. Only at the Gasoil chart the Stochastic indicator is still bullish. The NYMEX Crude Oil contract has already broken below the psychologically important mark of 40 USD. Moreover, Brent has dropped below Friday's low. This has generated fresh downward potential. However, there are no selling signals yet, whilst the Stochastic indicator is still bullish at the Gasoil chart. That is why we assess the technical constellation as neutral.

U.S.

Nymex is above average: Oil futures have edged lower in electronic trade this morning. Since Brent and WTI have already broken below Friday's lows, fresh downward potential has been generated. The traded volume at NYMEX is above average this morning. Investors are waiting for the European financial and forex markets to open today. The only important economic indicator due this Monday - German industrial production - has already been released earlier this morning.

Houston (ex-wharf indications 7-12)
380cst $186
180cst $281
MGO $432

New Orleans (ex-wharf indications 7-12)
380cst $199
180cst $253
MGO $447

Singapore (delivered indications 7-12)

Brent is down with -$1.20 for December contracts. Singapore paper is down with -$9.00 for 180cst with -$9.00 for 380cst for Dec, and for Jan 180 cst -$8.80 and 380cst with -$8.50 with MGO contracts Dec with -$1.24 and in Jan with -$1.17.The cargo market is bullish with 180cst +$3.27, 380cst with +$3.53 and MGO with +$0.95.

380cst $200
180cst $215
MGO $403

Fujairah (delivered indications 7-12)

380cst $200
180cst $239
MGO $602

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $188
MGO 0.1%S: $363