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Oil fell around 2 percent on Monday after Iran dashed hopes that there would be a coordinated production freeze any time soon, returning bearish sentiment to the market over a supply glut that has sent prices crashing.

Oil futures in London and New York tended to the upside on Friday morning, trading within their uptrends. In early morning trade oil prices increased on short-covering, testing their resistances. The IEA's monthly energy report didn't bring any fresh cues, failing to give oil futures direction. Still, oil prices held steady as the IEA expects that oil futures have bottomed out and that non-OPEC output will decrease more quickly than anticipated. Brent's resistance at 41.00 USD renewedly remained stable, capping upward potential. In the afternoon, Goldman Sachs cut their price forecasts for Brent in 2016 from 45 to 39 USD per barrel, warning that the latest price increase might be premature. In late-afternoon trade oil futures retreated, dropping back down to the second supports. In the evening Baker Hughes released its weekly rig count, which didn't have any larger impact on oil prices, though. In the course of the day oil prices lost some ground but compared to Thursday, oil futures settled on a higher level.

ICE Gasoil contract for April delivery settled at 367.00 USD on Friday, this was 5.50 USD above Thursday's settlement. With some 68,700 deals, the traded volume (front month) was above average.

The Stochastic indicator is slightly bearish at the Brent and the Gasoil chart as the black line has dropped clearly below the red line. At the WTI chart, the indicator doesn't give off any bearish cues yet. If the lines sustainably cross at this chart as well, a selling signal would be generated. The RSI remained above 70 percent. Only if the indicator falls clearly below this marker will a selling signal be generated. WTI's uptrend is still intact and at the ICE charts the 7-period moving averages are still limiting the downward potential.However, a technical triangle has developed at the Brent chart. If the North Sea crude oil contract breaks above or below this triangle, there might be fresh technical cues. As long as the uptrend remains intact, the technical constellation can hardly be assessed as bearish. Even so, the indicators are pointing to more downward potential although there are no decisive selling signals yet. Since the indicators are in overbought territory, however, considerable downward potential might be triggered if oil futures sustainably break below the 7-period moving averages. For the time being, we thus regard the technical constellation as neutral.

U.S.

Nymex on average: Oil futures at ICE and NYMEX remained rangebound in electronic trading this morning. Lately, they have edged lower. The traded volume at NYMEX is about on average this morning. Investors are now waiting for the European financial and forex markets to open as well as for the release of the economic indicators due this Monday. Moreover, the OPEC's monthly energy report is due this afternoon.

Houston (ex-wharf indications 14-3)
380cst $163
180cst $274
MGO $374

New Orleans (ex-wharf indications 14-3)
380cst $168
180cst $211
MGO $362

Singapore (delivered indications 14-3)

Brent is bearish with -$0.65 for Apr contracts. Singapore paper is down with -$1.50 for 180cst with -$2.25 for 380cst for Mar, and for Apr 180cst -$1.50 and 380cst with -$2.30 with MGO contracts Mar with +$0.73 and in Apr with +$0.76 .The cargo market is down with 180cst -$1.40, 380cst with -$1.34 and MGO with -$0.58.

380cst $186
180cst $189
MGO $347

Fujairah (delivered indications 14-3)

380cst $178
180cst $198
MGO $419

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $175
MGO 0.1%S: $358