---

Brent oil futures fell further below the $30-level to hit a fresh 12-year low this morning, amid ongoing concerns over a global supply glut.

After WTI bounced off its key support at 30 USD the technical constellation turned neutral on Wednesday morning. Technical selling pressure waned and investors were prompted to cover their short-positions. In the course of the morning oil futures thus showed a slight upward correction, bolstered as well by the rise in China's crude oil imports even though this rise was probably due to the country's efforts to increase its strategic oil reserves. The EIA's monthly energy report and the Iranian oil minister's comments on the calls for an extraordinary OPEC meeting limited the upside. Overall, market sentiment remained bearish. Moreover, the lack of fresh news limited the upward potential. Traders were waiting for the release of the DOE's data on US oil inventories which came in clearly bearish. Oil prices in London and New York thus slipped to fresh long-term lows Wednesday evening, posting considerable losses.

ICE Gasoil contract for February delivery settled at 287.50 USD on Wednesday, this is -5.00 USD below Tuesday's settlement. With some 86.500 deals, the traded volume (front month) was above average.

The Stochastic indicator and the RSI failed to give off bullish signals on Wednesday and this morning. The indicators thus remain neutral, moving deeply in oversold territory, though. This would favour an upward reaction if buying signals are generated. Brent and Gasoil have already dropped below Wednesday's lows, pointing to more downward potential. WTI is still trading above its key support at 30 USD. If the lines of the Stochastic indicator cross at the WTI chart, a buying signal could be generated. If there are no fresh signals, however, the technical constellation remains neutral. WTI has slipped back below the lower Bollinger Band, generating fresh downward potential.

U.S.

Nymex above average: Oil futures retreated in East Asia and Globex electronic trading this morning, however, some investors covered their short positions when Brent dropped below 30 USD. The traded volume at NYMEX is far above average this morning. Market players are waiting for the European financial and forex markets to open today, as well as for the release of some economic indicators. They will also await regarding the lift of sanctions against Iran.

Forecast: Crude oil +2.1; Distillates +1.3; Gasoline +1.9 million barrels vs previous week.
API: Crude oil +0.2; Distillates +6.1; Gasoline +8.4 million barrels vs previous week.
API: Crude oil -3.9; Distillates +3.7; Gasoline +7.0 million barrels vs previous week.

Houston (ex-wharf indications 14-1)
380cst $126
180cst $201
MGO $345

New Orleans (ex-wharf indications 14-1)
380cst $141
180cst $199
MGO $344

Singapore (delivered indications 14-1)

Brent is down with -$1.14 for March contracts. Singapore paper is bearish with -$4.20 for 180cst with -$4.70 for 380cst for Jan, and for Feb 180 cst -$4.75 and 380cst with -$4.25 with MGO contracts Jan with -$1.21 and in Feb with -$1.22 .The cargo market is bearish with 180cst -$3.16, 380cst with -$2.74 and MGO with -$0.05.

380cst $155
180cst $159
MGO $284

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $118
MGO 0.1%S: $268