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At 0952 GMT, the front-month March Brent contract on London's ICE futures exchange was up 59 cents at $117.32 a barrel. The front-month March light, sweet crude contract on the New York Mercantile Exchange was trading 18 cents higher at $96.80 a barrel. Brent climbed to $117.55 a barrel Thursday morning, before falling back slightly. It is the contract's highest point since Sept. 14, 2012. The stochastic oscillator had still been bearish Wednesday morning, favouring profit-taking in the range of the oil market’s long-term uptrend. Thus, we took a rather neutral stance in view of the technical analysis. In the first half of the day, profi-taking dominated the market, reinforced by the rising dollar and slipping stock markets in the early afternoon. Oil futures at ICE and NYMEX then breached first short-term supports. Brent, however, did not completely trade on its downward potential until 115.40 USD and WTI bounced off its psychologically important support at 95.00 USD. Only G.Oil fell below its medium-term support at 1,004.00 USD but failed to sustainably breach its. In all, the uptrend at ICE remains intact. Along with the U.S. stock market oil prices start to gradually trade up again. As the DoE data released yesterday was rather mixed, it did not provide any clear signals to give direction. Consequently, oil futures closed almost unchanged on Wednesday.

ICE Gasoil contract for February delivery settled at 1,011.75 USD on Wednesday. This was 1.25 USD above Tuesday's settlement. With some 41,500 deals the traded volume was below average.

The stochastic’s lines crossed at the WTI chart this morning, giving off a buying signal to the market. Given that the American crude traded different from ICE futures the past days, we want to give priority to the indicators at the Brent and G.Oil chart today. Both, the stochastic oscillator and the RSI indicate an overbought market situation without giving off any new signals. The lines of the stochastic have also crossed at the Brent chart by now, triggering a buying signal. In the course of the past day, Brent’s upside was limited by its resistance around 117.00 USD, which is also the upper limit of its medium-term trend channel. However, the North Sea crude failed to breach this line and thus, Tuesday’s high at 117.25 USD forms the crucial resistance today. Downward potential will be limited by the bottom lines of the uptrend channel, i.e. at 115.85 USD Brent and at 1,007.00 USD G.Oil. Below these lines, technical selling orders would be triggered.

U.S.

Nymex neutral to bullish: After the rise and fall yesterday, oil prices consolidated at a high level this morning. Demand remains relatively low and traders may again focus on the stock market and economic data. Trading interest at NYMEX is below average for this time of day. Traders are waiting for the European market to open, for signals from forex trading and for economic data to be released in the course of the day, see economic calendar. Along with U.S. job market data, the market will also eye the statements made by European central bankers after the ECB will have decided on its interest rate.

API: Crude oil +3.6; distillates-1.4; gasoline +1.6 million barrels vs previous week.
DOE: Crude oil +2.6; distillates-1.0; gasoline +1.7 million barrels vs previous week.
Survey: Crude oil +0.3; distillates-0.9; gasoline +0.2 million barrels vs previous week.

Houston (ex-wharf indications 06-02)
380cst $653
180cst $736
MGO $1061

New Orleans (ex-wharf indications 06-02)
380cst $657
180cst $695
MGO $1073

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

WTI is continuing its march upwards with +$0.50. Paper for Feb is tracking crude, gaining with 180cst +$1.75 and for 380cst +$1.75, and Mar contracts with 180cst +$2.30, 380st +$2.95. The cargo market is now adopting the bullishness and yesterday's pace with 180cst +$4.56, 380cst +$5.53 and MGO +$1.54.

Asia fuel oil intermonth spreads extended gains on Wednesday, with the balance February/March contango at its narrowest in nearly one week amid expectations of lower Western supply this month. However, demand remained lackluster with Chinese independent "teapot" refineries staying at the sidelines ahead of a week-long Lunar New Year holidays. Demand for marine fuel is also slow, with few shipowners willing to commit to a monthly term contract as February is a short month. Delivered 380cst in Singapore was seen avg. around 637.00/mt.

High premiums for prompt deliveries.
380 cst $657
180 cst $660
MDO $995

ARA (Amsterdam - Rotterdam - Antwerp)

Product supplies improved in both Rotterdam and Antwerp with most bunker suppliers able to offer for prompt delivery without problems. However, a few suppliers continued to report difficulties with product availabilities due to loading delays at some Rotterdam terminals.

Indications for delivered bunkers:
380cst : $ 644
(1.0 %) :$ 680
180cst: $ 674
(1.0 %):$ 710
MGO 0.1%S: $ 1010