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Crude oil prices gained in Asia this morning, rebounding from overnight declines after Libya and rebels agreed to end a standoff that left oil ports closed for eight months.

Oil futures at ICE and NYMEX initially declined on Monday already testing their downward potential in the early morning. This was due to news from Libya, where the government and rebels had confirmed a temporary accord on Sunday. According to the statements, the control over two of the occupied ports in the east of Libya - Hariga and Zueitina - had already been handed over to the government. Since the important ports Ras Lanuf and Es Sider are only to be deblocked in a few weeks after further negotiations, investors' euphoria remained limited. Most analysts said they were disappointed by this transitory solution which rebels hadn't implied last week when they generously announced that (all) the blocked ports might be reopened in a few days. Save figures regarding Germany's industrial production, there were no important indicators on the agenda yesterday. Instead, oil futures were bolstered in the afternoon by news regarding Ukraine. After having stormed and occupied the building of the regional government in Donezk, pro-Russian manifestors declared a souvereign republic. Fears that this will lead to a renewed escalation of the tensions between Russia and the West prompted investors to cover their short positions. Oil markets became very volatile and quotations sharply rose in late-afternoon trade. Futures marked new highs but failed to defend their gains. In the evening, oil prices hit new lows but, eventually, they remained nearly flat settling with only few losses.

ICE Gasoil contract for April delivery settled at 885.50 USD on Monday. This was -8.00 USD below Friday's settlement. With some 34,300 deals, the traded volume of the front month was below average.

The lines of the stochastic indicator are converging again and so the indicator can be seen as neutral. We already indicated yesterday that last week's buying cues should be largely spent. The RSI doesn't give any fresh cues either. However, a technical triangle has formed at oil charts limiting both upward and downward potential. Thus, we assess the technical constellation as neutral this morning.

U.S.

Nymex gaining: Oil futures edged higher in electronic trading this morning probably still buoyed by the latest events in Ukraine against the backdrop of which investors avoid short positions. The traded volume at NYMEX is below average for this time of day. Market players are now monitoring the development at stock and forex markets. They will also keep an eye on today's economic indicators, on the EIA's monthly energy report, on the negotiations between Iran and the West as well as the situation in Libya and in Ukraine.

Houston (ex-wharf indications 8-4)
380cst $585
180cst $690
MGO $987

New Orleans (ex-wharf indications 8-4)
380cst $618
180cst $673
MGO $981

Singapore (delivered indications 8-4)

WTI is gaining +$0.73. Singapore paper is up aswell with +$1.25 for 180cst and +$1.25 for 380cst for Apr, and for May 180 cst +$2.25 and 380cst $1.25 with MGO contracts being bullish Apr +$1.00 and May +$1.10. The cargo market is bearish with 180 cst -$6.80, 380cst -$4.23 and MGO -$1.36.

The Singapore fuel oil prices fell between $4.0-7.0/mt during the Asian Platts window yesterday tracking crude prices. The Singapore fundamentals remain soft on ample supply and fragile bunker demand. The delivered bunker premiums were between $4.25 and $5.25 above cargo prices.

380cst $585
180cst $603
MGO $910

Fujairah (delivered indications 8-4)

380cst $600
180cst $635
MGO $981

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $577
(1.0 %) : $635
180cst: $617
MGO 0.1%S: $858