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Oil prices fell around 2 percent this morning, extending losses from the previous session as concerns took hold that a six-week recovery may have petered out due to ongoing oversupply.

Oil futures are renewedly weighed down by the existing selling pressure in electronic trading this morning although some investors covered their short positions last night. Meanwhile, oil futures have even broken below Monday's lows. The traded volume at NYMEX is above average this morning. Market participants are now waiting for the European financial and forex markets to open as well as for the release of the economic indicators due today. In the evening (at 9.30 p.m.) the API will release its data on US oil inventories.

ICE Gasoil contract for April delivery settled at 355.75 USD on Monday, this was 11.25 USD below Friday's settlement. With some 84,000 deals, the traded volume (front month) was above average.

Monday morning decisive cues for oil futures at ICE and NYMEX were lacking. The technical constellation pointed to some downward potential as the Stochastic indicator was bearish at the Brent and the Gasoil chart, at the NYMEX charts, however, the lines of the indicator hadn't crossed yet. Since the uptrends were still intact the technical constellation was neutral in the morning. When Brent broke below its support at 40 USD oil futures lost ground rather quickly. Technical buying orders caused a price decline. When the Stochastic indicator gave off a selling signal at the WTI chart, the price slump accelerated. The technical constellation turned completely bearish when WTI dropped below the support near the 7-period moving average. Selling pressure lasted throughout the afternoon. In terms of market fundamentals, Russia showed understanding for Iran insisting on raising its oil production. Apparently, Russia wants to support Iran in this matter. This weighed on oil futures, as did the OPEC's monthly energy report according to which in 2016 oversupplies will be slightly more significant than expected. WTI headed for its support at 37 USD, breaking below this level in the afternoon. In late-afternoon and evening trade oil futures saw a light upward-correction as investors covered their short-positions but in all, all contracts broke their uptrends, ending the day with considerable losses.

U.S.

Nymex above average: Oil futures are renewedly weighed down by the existing selling pressure in electronic trading this morning although some investors covered their short positions last night. Meanwhile, oil futures have even broken below Monday's lows. The traded volume at NYMEX is above average this morning. Market participants are now waiting for the European financial and forex markets to open as well as for the release of the economic indicators due today. In the evening (at 9.30 p.m.) the API will release its data on US oil inventories.

Houston (ex-wharf indications 15-3)
380cst $159
180cst $276
MGO $367

New Orleans (ex-wharf indications 15-3)
380cst $166
180cst $212
MGO $357

Singapore (delivered indications 15-3)

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 $182
180cst $187
MGO $332

Fujairah (delivered indications 15-3)

380cst $178
180cst $197
MGO $418

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $163
MGO 0.1%S: $343