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Oil prices held steady above $107 a barrel but were headed for a second week of losses on Friday as the lack of a solution to the financial crisis in Cyprus loomed over investors. Russia turned down appeals for aid, leaving the island to strike a bailout deal with the European Union by next week or face a collapse, with potential knock-on effects for others in the euro zone and ultimately for oil demand. Providing a glimmer of encouragement, however, the Cyprus Presidency said it had agreed with Greece on a takeover of the Greek units of Cypriot banks. Oil prices turned higher while the euro rose to a session high after the announcement.

Shell PLC has resumed its deliveries of Nigerian "Bonny Light" crude oil. The company had halted a pipeline at the beginning of March due to damages caused by theft.

Futures at ICE and NYMEX have shown but little volatility on Thursday morning trading moderately lower within their given technical range. Crude oil futures tested their first supports rather soon. However, the WTI was unable to sustainably drop below the 93.00 dollars marker and ICE Brent did not succeed in breaching its support at 108.20 dollars. Oil futures only retreated after the opening of NYMEX floor trade, in the wake of a falling euro. The disappointing purchasing manager indices out of Germany and the Euro zone published in the morning have added to worries over the continued existence of the euro zone that had been stoked by the persisting troubles in Cyprus. In the afternoon, mixed economic data out of the USA were likewise unable to convince investors of an economic recovery. Therefore, market players cut their riskier assets like commodities. After the breach of the supports at 900.00 dollars for ICE G.Oil and at 107.85 dollars for the Brent further technical selling orders accelerated the decline at ICE and NYMEX. Oil prices only pulled back from their lows after the supports at 107.25 dollars for the Brent and at 92.00 dollars for the WTI had remained strong. The futures settled with moderate losses but still near their lows. In Asian trading this morning oil markets sharply rebounded, along with the euro. Meanwhile the common currency's gains have been limited which has also kept a lid on oil futures' gains. ICE Gasoil contract for April delivery settled at 898.25 USD on Thursday. This was 0.50 USD below Wednesday's settlement. With some 46,700 deals the traded volume was below average.

The technical constellation still gives but few new cues this morning. The stochastic indicator at the Brent and WTI charts is no longer bearish, however, as its lines converge. They might cross particularly at the Brent chart in the course of the day giving market players a buying signal. At the Gasoil chart, the indicator remains neutral and the RSI has not surpassed the 30% line yet. The mid-term down trends at ICE are still intact, Brent has but little slack up left, however. That is why we currently assess the technical situation as neutral.

U.S.

Nymex neutral: Despite the negative sentiment at Asian stock markets (Nikkei 225), oil futures have regained ground during Asian trading this morning. This is chiefly due to technical buying after yesterday's sell off and to the euro that has strengthened against the dollar. Meanwhile they have erased these gains, however. The traded volume at NYMEX is above average for this time of day. Market players are now eying the performance of European markets and new cues from forex trading. Since there are no US-indicators on the agenda today and on second level, only the ifo's business climate index will be published, investors' main focus will be on Cyprus and the euro zone .

Houston (ex-wharf indications 21-03)
380cst $615
180cst $658
MGO $990

New Orleans (ex-wharf indications 21-03)
380cst $616
180cst $658
MGO $990

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

WTI is slowing, but dropping with -$0.60. Paper for Apr is staying bearish, losing with 180cst -$4.50 and for 380cst -$4.00, and May contracts with 180cst -$4.50, 380st -$4.00. The cargo market gaining bearish momentum, losing on ifo 380 with 180cst +$0.57, and 380cst -$6.50 and MGO +$0.60.

In Singapore the Fuel Oil Market closed around parity, yesterday during the Platts window. The 180cst cargo prices inched up +$0.5 while the 380cst cargo prices slipped slightly more than -$0.5. The latest Singapore heavy residual inventory saw a marginal dip -0.1 mbbl to 18.46 mbbl. The delivered bunker premiums were around $5.0 above cargo prices yesterday.

High premiums for prompt deliveries.
380 cst $617
180 cst $624
MGO $900

Fujairah (delivered indications 22-03)

380cst $625
180cst $675
MGO $1015

ARA (Amsterdam - Rotterdam - Antwerp)

In Rotterdam and Antwerp, some suppliers reduced premiums for the delivered LSFO fuel oil grades as supplier tanks were full of products. Barge avails are better then beginning of the week.

Indications for delivered bunkers:
4380cst : $ 598
(1.0 %) :$ 618
180cst: $ 628
(1.0 %):$ 648
MGO 0.1%S: $ 885