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Oil prices gave back some of the previous session’s strong gains on Monday, with the U.S. benchmark falling back below the $29-level amid doubts over the likelihood of a collective OPEC cut happening anytime soon.

Market fundamentals were far less bearish Friday morning than they had been the days before. The United Arab Emirates Oil minister's comments in particular made investors more nervous. The oil minister had implied that the OPEC members were ready to cut output. The technical constellation was bullish anyway as the indicators had given off buying signals. This favoured a price increase. At first, market players stayed on the sidelines but when Venezuela suggested "freezing" the current production levels in order to avoid an exacerbation of the crude oil glut. At the beginning of US trade investors tended to cover their short-positions as traders in the USA are celebrating President's Day this Monday. Ahead of the prolonged US weekend traders tried to avoid larger risk positions. Oil prices extended their gains in afternoon trade bolstered by the speculations over an output cut and by the bullish technical constellation. They broke above several resistances. As a result, the RSI provided an additional buying signal at the WTI chart. That is why oil futures held steady until late in the evening, settling near their highs.

ICE Gasoil contract for March delivery settled at 311.75 USD on Friday, this was 26.25 USD above Thursday's settlement. With some 79,500 deals, the traded volume (front month) was above average.

The technical indicators have meanwhile lost their strongly bullish impact. The buying signals of the Stochastic indicator and the RSI were generated last week. Even so, the Stochastic indicator still has a slightly bullish effect on prices, the more so as the indicator has meanwhile exceeded 50% at the Brent and the Gasoil chart.. Oil futures traded on the ICE have already broken above the 7-period and the 21-period moving averages whereas the 21-period moving average might become a resistance at the WTI chart. Oil futures are testing Friday's highs. If they break above these markers, fresh upward potential might be generated. We thus assess the technical constellation as neutral to bullish this morning.

U.S.

Nymex above average: Oil futures already tested Friday's highs in early electronic trading this morning. However, they have failed to break above these levels up to now. The economic data out of China and a vast amount of crude oil exports from Iran to Europe weighed on oil prices. The traded volume at NYMEX is above average this morning. Investors are now waiting for the European financial and forex markets to open as well as on the release of the Eurozone's trade balance, and further comments regarding possible output cuts.

Houston (ex-wharf indications 15-2)
380cst $133
180cst $199
MGO $326

New Orleans (ex-wharf indications 15-2)
380cst $143
180cst $189
MGO $316

Singapore (delivered indications 15-2)

Brent is now gaining with +$2.08 for Apr contracts. Singapore paper is up with +$11.25 for 180cst with +$11.00 for 380cst for Feb, and for Mar 180cst +$11.00 and 380cst with +$11.00 with MGO contracts Feb with +$2.01 and in Mar with +$1.89 .The cargo market is gaining with 180cst +$1.52, 380cst with +$2.76 and MGO with +$1.88.

380cst $153
180cst $160
MGO $278

Fujairah (delivered indications 15-2)

380cst $153
180cst $171
MGO $420

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $152
MGO 0.1%S: $293