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Oil prices trimmed gains on Monday, the first trading day of the new year, after rising more than 3% earlier, with investors noting heightened geopolitical tension between Saudi Arabia and Iran.

As expected the traded volumes at oil markets remained low at the turn of the year. Many investors were still on holiday which is why oil futures were unlikely to show any sustainable price moves. At the end of 2015, the DOE as usual released its weekly report on US oil inventories but in a thin market the report failed to have a lasting impact on prices even though the figures released Wednesday were clearly bearish. On December 31, trading places in London and New York were open. Against the backdrop of the DOE's bearish data and the bearish fundamentals, oil futures renewedly retreated in the early afternoon. However, this prompted some investors to cover their short positions which lead to a light upward correction. The expiry of the NYMEX Heating Oil and the NYMEX Gasoline contracts with delivery in January added to volatility. The tensions between Iran and Saudi Arabia also bolstered prices in Asian trading this morning, which is why oil futures kicked off this week in the black.

ICE Gasoil contract for January delivery settled at 326.25 USD on Tuesday, this is -5.00 USD below Wednesday's settlement. With some 23,400 deals, the traded volume (front month) was below average.

The Stochastic indicator gave off fresh buying signals at ICE and NYMEX charts. WTI and Brent have already exceeded the 21-period moving averages. Moreover, WTI has broken above its short-term downtrend. The technical constellation can thus be assessed as bullish indicating fresh upward potential. Up to now investors should remain cautious, though, as the traded volumes were low last week, mitigating the impact of the technical signals. If the lines of the 7-period- and the 21-period-moving average cross at the WTI chart, the bullish signals would be confirmed. This might trigger further technical buying.

U.S.

Nymex above average; Oil futures gained some ground in Asian trading this morning, fostered by geopolitical tensions. In the early hours of European trading, however, they retreated. Weighed down by the decline in Chinese equities, oil futures have already broken below several supports. The traded volume at NYMEX is far above average this morning. Investors are waiting for the European financial and forex markets to open today as well as for news regarding the tensions between Iran and Saudi Arabia. Moreover, there are several economic indicators on the agenda today.

Houston (ex-wharf indications 4-1)
380cst $151
180cst $234
MGO $370

New Orleans (ex-wharf indications 4-1)
380cst $178
180cst $241
MGO $376

Singapore (delivered indications 4-1)

Brent is up with +$0.73 for February contracts. Singapore paper is bullish with +$6.70 for 180cst with +$6.75 for 380cst for Jan, and for Feb 180 cst +$4.95 and 380cst with +$5.00 with MGO contracts Jan with +$0.05 and in Feb with +$0.03 .The cargo market is bearish with 180cst -$2.74, 380cst with -$1.25 and MGO with -$1.19.

380cst $175
180cst $183
MGO $337

Fujairah (delivered indications 4-1)

380cst $165
180cst $210
MGO $594

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $148
MGO 0.1%S: $303