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Oil prices pushed back above the $30-level in Europe trade on Tuesday, drawing support from a broadly weak U.S. dollar. Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.

Since the meeting between the Venezuelan and the Saudi oil minister this weekend brought no results, the speculations over a possible output cut of OPEC and non-OPEC producers didn't have any room to grow. Investors thus refocused on oversupplies weighing on oil prices. Whilst Barclays analysts said that US demand had weakened, Iran is eager to step up its exports to Europe by mid-February. As to the technical constellation, we had already warned of potential selling signals in our early morning news. In the course of the day these selling signals materialized. The lines of the Stochastic indicator crossed at ICE and NYMEX charts, generating bearish signals. In part, oil futures broke below important supports (29.95 USD WTI), generating further downside. In the afternoon oil futures regained some ground, the more so as the weaker greenback bolstered prices in late-afternoon trade. Nonetheless, oil prices settled near their lows as the technical constellation took the upper hand again.

ICE Gasoil contract for February delivery settled at 304.50 USD on Monday, this was 1.00 USD below Friday's settlement. With some 29,000 deals, the traded volume (front month) was below average.

The RSI gave off a selling signal at the Gasoil chart on Monday morning, indicating more downside. The Stochastic indicator confirmed this selling signal at ICE and NYMEX charts on Monday, adding to technical selling pressure. This morning the indicators remain bearish, favouring tests of the downside. Monday's lows as well as the key supports at 29.50 USD WTI and 32.85 USD Brent are pivotal for such tests. Only if oil futures sustainably break below them will a strong downtrend be generated. That is why we are still assessing the technical constellation as neutral to bearish this morning.

U.S.

Nymex above average: Oil futures at ICE and NYMEX headed for Monday's lows in Asia and early electronic trading. The traded volume at NYMEX is slightly above average this morning. Investors are now waiting for the European financial and forex markets to open as well as on the economic indicators which are on the agenda today. Moreover, they will have a close eye on the IEA's monthly energy report due this morning and the API's data, which is to be released at 10.30 p.m. tonight.

Houston (ex-wharf indications 9-2)
380cst $150
180cst $225
MGO $352

New Orleans (ex-wharf indications 9-2)
380cst $157
180cst $195
MGO $346

Singapore (delivered indications 5-2)

Brent is now dropping after the overdone with -$0.64 for Apr contracts. Singapore paper is following with -$4.50 for 180cst with -$4.20 for 380cst for Feb, and for Mar 180cst -$4.00 and 380cst with -$4.05 with MGO contracts Feb with -$0.70 and in Mar with -$0.54 .The cargo market is reacting to yesterday's paper gains with 180cst +$11.64, 380cst with +$11.46 and MGO with +$2.58.

380cst $168
180cst $174
MGO $299

Fujairah (delivered indications 5-2)

380cst $159
180cst $179
MGO $432

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $150
MGO 0.1%S: $290