---

Oil prices fell this morning, after sharp gains in the previous session, as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.

Oil futures at ICE and NYMEX jumped upwards on in early Thursday trading. The Saudi military intervention in Yemen which was a reaction on the coup attempt of Houthi rebels made the geopolitical risk premium increase. The euro-dollar parity which was still strong in the morning also supported oil futures increase but the most important influence was the conflict in Yemen. Oil futures at ICE and NYMEX stayed on a high level in the afternoon but were extremely volatile. The dollar gained considerable ground versus the euro after the release of some US economic indicators. In dollar-negotiated oil futures became once again more expensive for traders outside the United States. But this fact didn't prevent further tests of futures Thursday's highs at ICE and NYMEX as market players especially concentrated on geopolitical tensions.

ICE Gasoil contract for April delivery settled at 545.50 USD on Thursday, this is +21.00 USD above Wednesday's settlement. With some 47,100 deals the traded volume (front month) was below average.

Oil futures at ICE surpassed several resistances yesterday generating further upside. The stochastic indicator at ICE is to be interpreted as neutral this morning but already triggered a first selling signal at the WTI chart. The bearish signal hasn't been confirmed at the Brent or the Gasoil chart so far but if its lines cross again in the course of the day a technical countermovement might be triggered. While yesterday's highs are expected to limit the possible upward movement we consider the technical constellation as slightly bearish this morning due to the selling signal of WTI's stochastic indicator.

U.S.

Nymex far above average: Oil futures returned from their yesterday's highs in the early morning but are still consolidating on a high level as the market stays volatile. Therefore, market players take profits from their long positions. 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, for news concerning the development in Yemen and the nuclear negotiations with Iran and for today's economic indicators.

Houston (ex-wharf indications 27-3)
380cst $308
180cst $464
MGO $583

New Orleans (ex-wharf indications 27-3)
380cst $325
180cst $377
MGO $599

Singapore (delivered indications 27-3)

WTI is losing with -$1.01. Singapore paper is down with -$8.20 for 180cst with -$8.50 for 380cst for Apr, and for May 180 cst -$8.75 and 380cst with -$9.00 with MGO contracts Apr losing with +$3.60 and in May with +$3.65. The cargo market is bullish with 180cst +$24.71, 380cst with +$24.13 and MGO bearish with +$3.56.

380cst $333
180cst $351
MGO $548

Fujairah (delivered indications 27-3)

380cst $343
180cst $366
MGO $740

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $308
MGO 0.1%S: $528