---

Crude oil prices rose slightly in Asia this morning on continued geopolitical tensions over the Ukraine, but ample U.S. industry inventory data tempered gains.

On Tuesday morning, quotations at ICE failed to break below Monday's lows at 891.75 USD Gasoil and 106.45 USD Brent. Markets were dominated by bullish factors like the closure of the Houston Ship Channel, the EU considering to also impose economic sanctions against Russia and China deciding to step up supportive measures for its economy bolstered oil prices in the first half of the day. Futures surpassed several short-term resistances before markets became rather volatile in the afternoon. This was due to reports saying that ExxonMobil cut its output at the Baytown refinery as the closure of the Houston Ship Channel hampered crude oil deliveries. Moreover, the company announced to further reduce throughput on Wednesday. Investors interpreted the news in different ways leading to larger price moves at ICE and NYMEX in late-afternoon trading. Markets only became a bit calmer later in the evening as the coast guard reopened the Houston Ship channel. WTI was also weighed down yesterday by the expected rise in US crude oil stocks. The builds in US crude oil inventories reported by the API last night exceeded expectations. Whilst WTI erased earlier gains in the evening, quotations at ICE remained steadier.

ICE Gasoil contract for April delivery settled at 901.00 USD on Tuesday. This was +5.75 USD above Monday's settlement. With some 39,600 deals, the traded volume of the front month was below average.

Neither the stochastic indicator, nor the RSI gave any fresh cues at ICE charts this morning. Even though the stochastic indicator at the WTI chart is still slightly bearish, its selling signal was already generated days ago. Therefore it has lost influence. Moreover, WTI is currently moving in a short-term uptrend that is still limiting the downward potential. If WTI breaks below this uptrend, there would be a technical sell-off and thus a bearish signal. Brent and Gasoil are currently staying above their downtrends consolidating on a high level. Up to now, the stochastic indicator and the RSI don’t point to any new signals, which is why we assess the technical situation as neutral this morning.

U.S.

Nymex cooling: After oil markets saw some profit taking in a rather volatile trade yesterday evening, quotations regained some ground this morning for no specific fundamental reasons. The traded volume at NYMEX is below average for this time of day. Traders 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. They are also waiting for the DOE's data on US oil inventories, due at 4.30 p.m.

API: Crude oil +6.3; Distillates +0.3; Gasoline +-2.8 million barrels vs previous week.
DOE's: due out tonight.
Forecasts: Crude oil +2.5; Distillates -1.11; Gasoline -1.7 million barrels vs previous week.

Houston (ex-wharf indications 26-3)
380cst $590
180cst $671
MGO $990

New Orleans (ex-wharf indications 25-3)
380cst $630
180cst $676
MGO $986

Singapore (delivered indications 26-3)

WTI is bearish with +$53. Singapore paper is bullish with +$0.95 for 180cst and +$0.25 for 380cst for Apr, and for May 180 cst +$1.10 and 380cst +$0.65 with MGO contracts being bullish Apr +$0.30 and May +$0.34. The cargo market is bearish with 180 cst -$1.04, 380cst -$1.03 and MGO +$0.43.

The Singapore fuel oil prices extended losses and were assessed app. $1.0 down during the Asian Platts window. The delivered bunker premiums were ranging between $5.0 and $6.5 above cargo prices yesterday.

380cst $602
180cst $617
MGO $920

Fujairah (delivered indications 26-3)

380cst $608
180cst $640
MGO $983

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $578
(1.0 %) : $645
180cst: $618
MGO 0.1%S: $868