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Brent oil futures fell below the $28-level to hit a fresh 13-year low on Monday, as international sanctions against Iran’s nuclear program were lifted over the weekend, opening the door to a wave of new oil and adding to concerns that a global glut will linger.

Oil prices at ICE and NYMEX started with a weak tendency in electronic trading on Friday morning despite some bullish technical signals being triggered. Yet, expectedly these had no impact on the oil market that day as traders were focused on the Iran issue where sanctions were expected to be lifted over the weekend. Comments made by U.S. and Iran officials in the course of last week had hinted at a possible "go" from the IAEA already at the weekend which means rising exports of crude from Iran that will hit a saturated market. So traders were cautious on Friday and opted for short positions. Brent dropped below its 30 USD key support already during European trading hours. A slight and temporary recovery at the beginning of the session in New York was mainly due to short covering ahead of the weekend and a weaker dollar that made oil less expensive for traders outside the U.S. But upside was limited as nobody was willing to hold long positions over the weekend in expectation of the additional barrels from Iran. Oil prices eventually settled at fresh long-term lows in London and New York.

ICE Gasoil contract for February delivery settled at 278.75 USD on Friday, this is 4.50 USD below Thursday's settlement. With some 76,600 deals, the traded volume (front month) was above average.

The buying signals the Stochastic indicator had triggered at the Brent and the WTI chart on Friday morning had been absorbed by noon. Anyway, the indicators had little influence on the market as the fundamentals were too strong lately. Neither the RSI nor the Stochastic are producing any fresh signals this morning at ICE and NYMEX. The market is still strongly overbought which favours a technically driven upward correction in case buying signals are triggered. As long as those signals have not yet been produced we consider the technical constellation as neutral today.

U.S.

Nymex above average: Oil prices at ICE and NYMEX hit fresh long-term lows in Asian trading this morning, opening up more downside. The traded volume at NYMEX is far above average this morning. In the absence of important economic indicators, market participants are waiting for the European financial and forex markets to open this Monday.

Houston (ex-wharf indications 18-1)
380cst $126
180cst $205
MGO $343

New Orleans (ex-wharf indications 18-1)
380cst $142
180cst $197
MGO $347

Singapore (delivered indications 18-1)

Brent is down with -$1.87 for March contracts. Singapore paper is bearish with -$5.50 for 180cst with -$5.75 for 380cst for Jan, and for Feb 180 cst -$4.80 and 380cst with -$4.95 with MGO contracts Jan with -$1.32 and in Feb with -$1.24 .The cargo market is bullish with 180cst +$5.10, 380cst with +$5.94 and MGO with +$0.17.

380cst $155
180cst $158
MGO $280

Fujairah (delivered indications 18-1)

380cst $143
180cst $159
MGO $469

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $113
MGO 0.1%S: $253