---

Nymex crude prices rose this morning on an expected hike in demand for heating oil from U.S. after a winter storm across the eastern seaboard.

Futures at ICE and NYMEX saw light profit taking on Friday morning. They were slightly weighed down by the moderately bearish technical constellation as well as by Thursday's late rise. After US economic data released in the early afternoon disappointed investors' expectations, market players took even more profits and so several supports were breached. Market fundamentals remained bullish, however, as there were news on production losses in Libya. Oil futures thus regained ground in the course of the evening. Moreover, the Michigan Sentiment Index came in better than expected improving market sentiment, which had suffered from the disappointing data on US industrial production. At last, the steady tendency prevailed at oil markets in evening trade and so futures more than pared their temporary losses, with ICE futures settling near last week's highs.

ICE Gasoil contract for March delivery settled at 920.25 USD on Friday. This was +1.75 USD above Thursday's settlement. With some 63,400 deals, the traded volume was above

The slightly bearish constellation at the ICE charts has meanwhile waned. The lines of the stochastic indicator have converged again and so the indicator has turned neutral. At the WTI chart, the stochastic indicator has also lost its bearish influence as its lines are no longer diverging. The RSI is in overbought territory above the 70%-marker at all charts. Only if it drops below this level will the indicator give a new selling signal. Since there are no new cues so far, we assess the technical constellation as neutral this morning.

U.S.

Nymex neutral: Last night, oil futures at ICE briefly rose only to retreat again little later. In all, oil prices remain on a high level near Friday's highs, however. The traded volume at NYMEX is above average for this time of day. Traders are now eying the development at stock markets waiting for new cues from forex markets. As to economic data, there are no important figures to be released today. Moreover, trade is likely to remain rather thin as US markets remain closed due to President's Day.

Houston (ex-wharf indications 17-2)
380cst $598
180cst $678
MGO $1007

New Orleans (ex-wharf indications 17-2)
380cst $611
180cst $652
MGO $1007

Singapore (delivered indications 17-2)

WTI is neutral. Singapore paper is back on a bullish track with +$1.50 for 180cst and +$1.50 for 380cst for Mar, and for Apr 180 cst +$2.00 and 380cst +$2.60 with MGO contracts being bearish Mar +$0.95 and Apr +$0.91. The cargo market is bullish with 180 cst +$2.15, 380cst +$1.33 and MGO +$0.20.

The Singapore fuel oil markets closed slightly higher last Friday, posting app.$1-1.5/mt gains at Asian Platts window. Market payers reported mixed demand and continuously tight avails with some suppliers quoting for the deliveries from 19-21 February. This morning both markets are trading slightly higher.

380cst $618
180cst $630
MGO $932

Fujairah (delivered indications 17-2)

380cst0 $616
180cst $647
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $585
(1.0 %) : $636
180cst: $615
MGO 0.1%S: $ 880