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The price of crude oil was trading firm at a fresh a four-month high Tuesday morning amid a steady euro after a poll showed German consumer morale rose for the first time in four months. Light Sweet Crude Oil (WTI) futures for March delivery, edged up $0.05 to $95.49 a barrel. Yesterday, oil settled firm near a 4-month high mostly on supply concerns linked to the situation in the Middle East with news reports of a pipeline blast in Algeria. The continued clashes between protestors and police in Egypt stoked fears that oil transit through the country could be disrupted. This morning, the U.S. dollar was lingering around its 11-month low versus the euro.

Oil futures in London and New York opened with a downward tendency in electronic trading this week, breaching first supports early in the morning. However, losses were limited at 966.00 dollars G.Oil, at 112.80 dollar Brent and 95.70 dollar WTI. While Brent and WTI were rangebound until the opening of NYMEX floor trading, G.Oil at ICE could recover from its day’s lows. With the better-than-expected data on durable goods orders in the USA, traders’ became increasingly optimistic that the recovery of the world’s largest economy is gaining traction, boosting oil prices, which then breached several resistances, being further pushed by technical buying orders. When the figures on the U.S. housing market were again disappointing, market sentiment was dampened and expect for ICE G.Oil, oil futures dropped to their day’s lows. Merely NYMEX RBOB Gasoline traded steady at its high level. Adding to this were concerns about impasses in the populous mid-Atlantic region in the USA.. During further trading, a positive sentiment prevailed at the oil market. Thus, oil prices could largely compensate their losses. WTI at NYMEX closed at a 19-week-high.

ICE Gasoil contract for February delivery settled at 970.75 dollars on Monday. This was 2.25 dollars above Friday's settlement. With some 46,400 deals the traded volume was below average.

The technical analysis is giving off mixed signals this morning. While the stochastic oscillator had turned bearish yesterday as its lines crossed, a buying signal arised at the WTI chart. The indicator’s lines are converging again at the Brent chart, which give the technical analysis a neutral view. Although the market is largely overbought, especially at ICE, the strong uptrend is still intact, preventing futures to correct downwards. WTI’s key resistance is at 97.00 dollar. If this line proves to be strong today, analysts expect a small downward correction within the trend channels. Given the range of crucial economic data to be released this week, the technical analysis may be of secondary importance.

U.S.

Nymex slightly bullish: Oil prices trade with a mixed tendency this morning, staying within their range of Friday night. Trading interest at NYMEX is slightly below average for this time of day. Traders are waiting for the European market to open, for fresh signals from forex trading and again, for the stock market, which had rattled off an impressive price rally last week.

Survey of US Petroleum inventories due out tonight at 22:30 (API) and Wednesday at 16:30 (DOE).
Crude oil + 2.5; distillates -1.1; gasoline +1.0 million barrels vs previous week.

Houston (ex-wharf indications 28-01)
380cst $637
180cst $694
MGO $1020

New Orleans (ex-wharf indications 28-01)
380cst $648
180cst $688
MGO $1030

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

The Singapore fuel oil market dipped app. $2.0 during the morning Platts window yesterday. Market demand was said to be soft despite the lower outright prices. The delivered bunker premiums stayed around $4.5 above cargo prices. This morning the markets are trading slightly higher.

High premiums for prompt deliveries.
380 cst $635
180 cst $640
MDO $950

ARA (Amsterdam - Rotterdam - Antwerp)

Fuel oil demand picked up by the end of last week, backed by stronger market fundamentals and narrowly range-bound crude oil complex. Barge congestion persisted at the port of Rotterdam but waiting time had reduced to two days from five days over the last week. In Antwerp the LSFO availabilities improved, but suppliers were still unable to quote LSFO for prompt deliveries as a consequence of Rotterdam delays and blending problems at local refineries in Antwerp.

Indications for delivered bunkers:
380cst : $ 621
(1.0 %) :$ 654
180cst: $ 651
(1.0 %):$ 684
MGO 0.1%S: $ 969