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Oil futures fell back below the $30-level in Europe trade this morning, as ongoing concerns over a global supply glut and slowing demand dragged down prices.

The bullish cues which had still bolstered oil prices at the end of last week had waned on Monday morning. The bullish signals provided by the technical constellation were priced in and buying pressure abated against the backdrop of last week's short-covering. WTI had already reached the 50% Fibonacci-retracement at 32.30 USD on Friday evening. Moreover, bullish fundamentals were lacking on Monday as Iraq stated that its oil output hit record-levels in December, Saudi Arabia announced to keep investing in the expansion of its oil production and China reported a sharp decrease in its 2015 diesel demand. That is why oil futures in London and New York increasingly declined in the course of the afternoon. The technical price rally thus came to an end and oil futures settled near their lows.

ICE Gasoil contract for February delivery settled at 277.25 USD on Monday, this is 6.75 USD below Friday's settlement. With some 75,900 deals, the traded volume (front month) was above average.

When WTI reached its price target at 32.30 USD, technical buying pressure significantly decreased. The bullish influence of the Stochastic indicator and the RSI has meanwhile waned and so, the indicators can be considered neutral again. This leads to expect that oil futures are about to consolidate, with WTI's drop below the 7-period moving average already pointing to further downward potential. Gasoil and Brent haven't sustainably broken below the 7-period moving averages yet. The technical indicators aren't providing any clear cues yet. However, Brent and WTI have fallen below Monday's lows, pointing to more downside. We are thus assessing the technical constellation as slightly bearish this morning. If Brent and Gasoil follow suit of WTI, breaking below their 7-period moving averages, and if oil futures also drop below Friday's lows, selling pressure would increase. The technical constellation would turn completely bearish if the lines of the Stochastic indicator sustainably crossed, generating selling signals.

U.S.

Nymex above average: Globex trade (NYMEX electronic computer trading) situation in the morning.

Oil futures remained weak in electronic trading this morning. Some contracts have already slipped below Monday's lows. The traded volume at NYMEX is far above average this morning. Market participants are now waiting for the European financial and forex markets to open as well as on the economic indicators due today. This evening at 10.30 p.m., the API will release its data on US oil inventories.

Houston (ex-wharf indications 26-1)
380cst $132
180cst $212
MGO $332

New Orleans (ex-wharf indications 26-1)
380cst $141
180cst $190
MGO $333

Singapore (delivered indications 26-1)

Brent is down with -$1.50 for Apr contracts. Singapore paper bearish with -$12.25 for 180cst with -$12.55 for 380cst for Feb, and for Mar 180 cst -$11.95 and 380cst with -$12.55 with MGO contracts Feb with -$2.66 and in Mar with -$2.59 .The cargo market is bullish with 180cst +$6.62, 380cst with +$7.55 and MGO with +$1.80.

380cst $155
180cst $164
MGO $260

Fujairah (delivered indications 26-1)

380cst $166
180cst $178
MGO $473

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $135
MGO 0.1%S: $253