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Crude oil prices dropped in Asia on Monday as the supply outlook remained bearish with taks of an output freeze facing resistance.

Oil futures in London and New York kicked of the day on a bearish note on Friday as Libya had announced to resume exports from important terminals. The technical constellation remained neutral and after the losses oil futures had marked the days before the downward potential remained limited. Saudi Arabia's deputy crown prince, Mohammed bin Salman, roiled the markets by saying in an interview that the kingdom would only limit its output if Iran does as well. Since Iran has so far refused to freeze its output, the expected agreement between OPEC-members and other important producers to freeze production at January levels has renewedly become unlikely. Against the backdrop of the deputy crown prince's comments, traders in London and New York cut their long-positions. Oil futures quickly pulled back from earlier highs near the 7-period moving average, which served as a key-resistance. Several short-term supports were breached, generating technical selling pressure in the afternoon. However, the technical constellation didn't provide any clear selling signals. Traders ignored the better than expected economic indicators out of the USA. The positive monthly labor market statistics usuall indicate that fuel and oil demand might grow more significantly than expected but this time, the data's bullish effect on oil prices didn't come to be. Oil futures slid to the lowest level in about a month, ending the day with fresh lows.

ICE Gasoil contract for April delivery settled at 335.75 USD on Friday, this was 19.25 USD below Thursday's settlement. With some 33,100 deals, the traded volume (front month) was below average.

The lines of the Stochastic indicator have crossed or are diverging at the ICE and NYMEX charts. That is why the indicator has turned bearish again. The RSI is moving in oversold territory, unable to provide any fresh selling cues. The short-term downtrend remains intact, with oil futures already having dropped below Friday's lows. In all, the technical constellation is bearish as oil futures might have more downside. They might thus further approach the lower Bollinger Bands this Monday. If there is an upward correction, the downtrend will remain intact as long as oil futures don't sustainably break above the 7-period moving average. However, there currently aren't any technical signals which indicate an upward reaction.

U.S.

Nymex above average: Oil futures have slipped below Friday's lows in Asian trading but remained rangebound in Globex electronic trade this morning. 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 for the release of the economic indicators due today.

Houston (ex-wharf indications 4-4)
380cst $154
180cst $270
MGO $360

New Orleans (ex-wharf indications 4-4)
380cst $166
180cst $210
MGO $360

Singapore (delivered indications 4-4)

Brent is bullishh with -$0.77 for Apr contracts. Singapore paper is down with -$5.40 for 180cst with -$5.50 for 380cst for Apr, and for May 180cst -$5.50 and 380cst with -$5.00 with MGO contracts Apr with -$0.60 and in May with -$0.65.The cargo market is down with 180cst +$0.66, 380cst with +$1.89 and MGO with -$0.07.

380cst $179
180cst $185
MGO $334

Fujairah (delivered indications 4-4)

380cst $182
180cst $191
MGO $420

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $158
MGO 0.1%S: $318