---

Brent crude oil steadied under $112 per barrel on Tuesday on optimism that the euro zone economy may finally be stabilising and that U.S. consumers are beginning to spend again after several years of belt tightening. Brent futures are near the top of an $8 range seen over the last three months with investors encouraged by world economic trends, despite some negative data suggesting downward risks for global oil demand and prices. The German economy contracted by a larger-than-expected 0.5 percent in the final quarter of 2012, data showed on Tuesday, but most economists expect it to recover in the months ahead, supporting the euro zone. U.S. retail sales rose more than expected in December as Americans shrugged off the threat of higher taxes and bought a range of goods, suggesting momentum in consumer spending as the year ended, data showed on Tuesday. Brent futures for February were down 20 cents at $111.68 per barrel by 1355 GMT. The contract, which expires on Wednesday, settled $1.24 higher in the previous session. U.S. oil was down 45 cents to $93.69.

Oil futures traded in a relatively tight range within their predefined resistances and supports at the beginning of the week. The tendency was slightly bearish at ICE and prices at NYMEX were supported by the newly operating expansion of the Seaway Pipeline. In the course of the day, a stronger dollar in London as well as in New York favoured some profit-taking. Along with the euro, prices recovered again and rose close to their first resistance, with G.Oil at ICE even breaching it. The worse-than-expected figures on European industrial production dampened market sentiment at the European market towards noon and profit-taking was limited by a weaker euro and a retreating stock market. As there were hardly any fundamental news, traders eyed Ben Bernanke's speech in front of the U.S. Congress. Only when crude futures at ICE and NYMEX had fallen back to their day's lows, did prices rise again, favoured by technical sellings after bouncing off the supports at 110.50 dollars Brent and at 93.00 dollars WTI. While crude in New York compensated yesterday's losses, product futures and Brent climbed to their day's highs, Ben Bernankes's speech before the U.S. Congress revealed nothing new and thus had little impact on prices.

ICE Gasoil contract for January delivery settled at 945.50 dollars on Monday. This was 14.75 dollars above Friday's settlement. With some 90,300 deals the traded volume was well above average.

This morning, the technical view is again mixed. At ICE, the stochastic's lines are converging again and could trigger a buying signal when they cross. The RSI is already touching the 70%-line with G.Oil, reinforcing the buying signal if the line is breached. The indicator is stilll neutral for Brent. The stochastic oscillator is also rather neutral for WTI but still shows an overbought situation, which favours profit-taking. As expected, the upward trends at both oil markets have proved to be strong. The technical analysts deem the situation rather neutral and expect prices to consolidate at the current level.

U.S.

Nymex Access neutral to bearish: After oil futures traded up at night, they followed the weaker euro vs the dollar with a soft tendency in Asian trading this morning. Trading interest at ICE and NYMEX is about average for this time of day. Market participants are waiting for the European market to open, for the development of the euro and a series of economic data mostly out of the USA.

Houston (ex-wharf indications 14-01)
380cst $625
180cst $685
MGO $1005

New Orleans (ex-wharf indications 14-01)
380cst $641
180cst $698
MGO $1009

Singapore (correct as of 1430hrs LT - delivered indications)

WTI is stable still with +$0.15. Paper for Jan are slightly bullish, rising with 180cst +$2.00 and for 380cst +$2.00 , Feb contracts are rising as well with 180cst +$2.00, 380st +$3.00. The cargo market is bearish, dropping with 180cst -$6.13, 380cst -$6.20 and MGO -$1.09.

The Singapore fuel oil market prices fell more than $3.0 during the morning Platts window. The fuel oil markets were weaker yesterday following lower demand. The delivered bunker premium were around +$5.0 above cargo prices yesterday. Bunker fuel oil swaps were up app.$2.5/mt at the front of the forward curve for Singapore papers. Backend was a few dollars stronger, flattening the curve slightly. This morning both markets are trading higher.

High premiums for prompt deliveries.
380 cst $631
180 cst $634
MDO $950

ARA (Amsterdam - Rotterdam - Antwerp)

There were a few suppliers who were unable to supply for prompt deliveries due to busy schedules. The port of Rotterdam was experiencing difficulties with LSFO for prompt deliveries due to operational delays. Due to the tightness of LSFO in Antwerp the premiums are expected to be higher.

Indications for delivered bunkers:
380cst : $ 611
(1.0 %) :$ 639
180cst: $ 641
(1.0 %):$ 669
MGO 0.1%S: $ 960