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Who blinks first - the fight continues (Brent: $40.9)

Oil prices dropped to 2009-low yesterday as markets were digesting OPEC's comments from Friday.

Indonesia, recently re-entering OPEC, joins a row of members who will not support an OPEC output cut decision unless non-OPEC / high-cost crude producers also cut output. However, it also adds that it recommends an emergency meeting if oil drops to $30 per barrel. The fight for market share continues and at present it seems uncertain who will "blink first" and reduce output or at least suggest a reduction.

China's crude oil imports in November increased by 7.6% to 6.65 mio. barrels per day compared to November 2014 - up 440,000 bpd from October. China seems to be purchasing oil at current attractive levels to build strategic stocks. The country is expected to fill up new 70-90 million barrels’ reserve facilities which are ready in early 2016.

Later today, the weekly oil stocks data from the American Petroleum Institute will be followed closely in a world full of crude oil. Consensus ahead of Wednesday’s EIA oil inventory report is a small build in crude. In other words, we are in for another volatile day in the oil market business.