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Oil prices fell sharply in Europe trade this morning, amid doubts over the likelihood of a deal between Russia and OPEC producers to cut output happening anytime soon.

When oil futures at ICE and NYMEX last week had risen above their 21 day MA lines fresh upside was produced. On Friday, prices therefore were supported by technical movements as well as by rumours that a meeting of OPEC members and Russia would be held in February to talk about a reduction of global oil supplies. But analysts stayed sceptical, the more as an unknown OPEC source discounted such a meeting. However, the rumours prevented the building up of fresh speculative short positions. But in a highly volatile market ahead of the expiry of ICE Brent and NYMEX heating oil and gasoline front month contracts, oil prices did not find a clear direction. Their upside was yet limited by the rise of the dollar, making dollar-nominated oil more expensive for holders of other currencies, but prices stayed supported also in after-hour trading by technical movements and the rumours of a possible reduction of supplies and finished higher in London and New York.

ICE Gasoil contract for February delivery settled at 304.00 USD on Friday, this was 3.75 USD below Thursday's settlement. With some 58.100 deals, the traded volume (front month) was about on average.

Oil futures at ICE and NYMEX are in a short-term uptrend today with upside until their upper Bollinger bands. The 7 day and 21 day moving average lines have meanwhile crossed at the Brent chart, triggering a technical buying signal that opens more upside. Yet the lines of the Stochastic indicator crossed at the WTI and the gasoil chart and produced a so far weak selling signal as the lines have not yet crossed at the Brent chart. The RSI is at the overbought level for the Brent, producing an additional selling signal in case it drops below the 70 line. The technical constellation is not quite clear this morning which is why we consider it currently neutral despite the Stochastic's selling signals for the WTI and the gasoil. However, we like to point out that, should the lower limit of the short-term uptrend be breached, followed by selling signals of Stochastic indicator and RSI Brent, prices could lose ground on stop loss selling orders and fresh short positions.

U.S.

Nymex above average: In East Asia oil futures lost most of the ground gained on Friday, extending their losses in electronic trading this morning, testing their upward potential. So far, short-term resistances have capped gains, though. 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 release of quite a few economic indicators due today. lut.

Houston (ex-wharf indications 1-2)
380cst $149
180cst $231
MGO $347

New Orleans (ex-wharf indications 1-2)
380cst $152
180cst $204
MGO $343

Singapore (delivered indications 1-2)

Brent is down with -$0.20 for Apr contracts. Singapore paper bearish with -$0.75 for 180cst with -$1.50 for 380cst for Feb, and for Mar 180cst -$0.75 and 380cst with -$2.10 with MGO contracts Feb with -$0.16 and in Mar with -$0.05 .The cargo market is bullish with 180cst +$23.84, 380cst with +$13.34 and MGO with +$1.37.

380cst $179
180cst $184
MGO $293

Fujairah (delivered indications 1-2)

380cst $168
180cst $195
MGO $438

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $163
MGO 0.1%S: $293