---

Crude oil futures were little changed during early European trading hours on this morning, trading near more than one-month lows after Thursday's strong U.S. data, while investors were eyeing upcoming U.S. economic reports to be released later in the day.

After the disappointing economic data out of China and the massive builds in US crude oil stocks, which coincided with the DOE's announcement of 5 million barrels of strategic oil reserves planned to be released, oil futures declined on Thursday morning. Particularly futures at ICE broke below several supports triggering a technical selloff. Market participants avoided larger short positions, however, against the backdrop of the referendum regarding Crimea scheduled this weekend and the high potential for another conflict between Russia and the West. Thus, oil prices remained relatively volatile seeing some upward corrections now and again. On Wednesday evening, investors's spreadbets (they increased their long positions in Brent and their short positions in WTI) made the price discount between the two benchmark blends widen to about 10 dollars. These speculative positions were cut yesterday as market players tended to take profits. Brent thus breached its support at 107.60 dollars, which had limited the downside until then. The North Sea crude oil contract dropped near 107.00 dollars. Since WTI remained relatively steady and nearly unchanged on the day, the spread between Brent and WTI narrowed again amounting to about 9.30 dollars lately.

ICE Gasoil contract for April delivery settled at 890.75 USD on Thursday. This was -4.75 USD below Wednesday's settlement. With some 77,400 deals, the traded volume of the front month was above average.

This morning, there are no clear technical cues at ICE and NYMEX charts either. Only the stochastic indicator at the Brent chart might generate a selling signal if its lines cross. However, this indicator might be skewed by yesterday evening's profit taking from spreadbets. In contrast to this, the stochastic indicator at the WTI chart might give a buying signal if its lines cross. In all, the technical constellation doesn't give any new or decisive cues. That is why we still assess the technical situation as neutral. The fundamental situation should be in focus today anyway putting in the background the technical factors.

U.S.

Nymex cooling: After yesterday's lows, oil futures at ICE have ticked higher in electronic trading this morning. Quotations at ICE remained rather unchanged. The traded volume at NYMEX is about on average for this time of day. Investors are now monitoring the development at stock and forex markets looking ahead to today's economic data and keeping an eye on the development of the situation in the Ukraine and Libya.

Houston (ex-wharf indications 14-3)
380cst $595
180cst $675
MGO $996
New Orleans (ex-wharf indications 14-3)
380cst $645
180cst $677
MGO $998

Singapore (delivered indications 14-3)

WTI is bullish with +$0.29. Singapore paper is bearish with -$0.75 for 180cst and -$0.50 for 380cst for Mar, and for Apr 180 cst -$0.65 and 380cst +$0.75 with MGO contracts being bearish Mar -$0.35 and Apr -$0.37. The cargo market is bullish with 180 cst +$4.37, 380cst +$1.73 and MGO -$0.51.

Singapore onshore fuel oil stocks rose 13.5% in the week to March 12 to a three week high of 19.478 million barrels. Paper FO market yesterday we saw firmer VIS reflecting buying on 180FO and front time-spread as well, we saw moving more firm into backwardation. This morning both markets are trading slightly higher.

380cst $604
180cst $616
MGO $915

Fujairah (delivered indications 14-3)

380cst $607
180cst $643
MGO $982

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) : $648
180cst: $608
MGO 0.1%S: $863