---

Crude oil futures tumbled this morning, after bearish comments by Saudi Arabia’ oil minister prompted market players to refocus their attention on ample global supplies.

Oil futures at ICE and NYMEX dropped on Friday morning because of bearish fundamentals extending Thursday's losses. Further downside was caused due to the breach of Thursday's lows especially as the slightly bullish technical constellation was degenerated in the course of the morning. The volatility at the oil market stayed strong as we previously announced to the expiry of NYMEX WTI's front month. After some initial losses a technical upward correction was encouraged in the afternoon which was caused by the weak US dollar. Market players liquidated their dollar long positions triggering a strong increase in the euro. Therefore, in dollar negotiated oil futures became less expensive for traders outside the United States so that many market players used the constellation for short coverings at WTI. Market players assured their positions by technical buying orders because of the upcoming expiry of WTI's front month. These were automatically triggered due to the upward movement. This fact encouraged the strong increase in the afternoon of WTI and the other contracts at ICE and NYMEX. Therefore, oil futures in London and New York settled surprisingly strong on Friday evening.

ICE Gasoil contract for April delivery settled at 525.75 USD on Friday, this is +5.00 USD above Thursday's settlement. With some 47,700 deals the traded volume (front month) was below average.

The RSI triggered mixed signals at ICE on Friday but settled above the 30 line on Friday evening and is to be interpreted as slightly bullish, therefore. The stochastic indicators' lines at ICE and NYMEX converge again but will only trigger a selling signal if they cross. Meanwhile downtrends at ICE stay intact while a short-term technical triangles have been built. A breach of this constellation would provide direction. The technical constellation stays rather instable this morning regarding the intact downtrends and the possible signals of the stochastic indicators. Therefore, we consider the technical constellation as neutral this morning.

U.S.

Nymex far above average: Oil futures at ICE and NYMEX gave back some of their gains in the early morning again after Friday's increase. But they mark in a rather narrow range since then. The traded volume at NYMEX is far above average at this time of the day. Investors are waiting for the European financial and the forex markets to open and for news concerning the nuclear negotiations with Iran while there are only few economic indicators on the agenda today.

Houston (ex-wharf indications 23-3)
380cst $294
180cst $464
MGO $582

New Orleans (ex-wharf indications 23-3)
380cst $304
180cst $365
MGO $588

Singapore (delivered indications 23-3)

WTI is gaining with +$0.30. Singapore paper is up with +$2.25 for 180cst with +$2.60 for 380cst for Apr, and for May 180 cst +$1.85 and 380cst with +$2.35 with MGO contracts Apr gaining with +$0.30 and in May with +$0.30. The cargo market is bearish with 180cst -$4.55, 380cst with -$5.20 and MGO bearish with -$1.65.

380cst $303
180cst $323
MGO $518

Fujairah (delivered indications 23-3)

380cst $313
180cst $338
MGO $743

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $288
MGO 0.1%S: $512