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Technical indicators: neutral to bullish

Oil prices are trading higher on a weaker dollar. WTI crude and the brent breached first resistance lines, the brent contract reached a 26-month high.

The important 90 dollars resistance was breached, but the push seems not strong enough to test the 93 dollars mark.

Oil prices in late NYMEX session and after-hour trading last night, WTI crude trading near the highest in two weeks, after having fallen earlier on Wall Street's losses in a volatile and thin trade. With the gains of US equity markets on optimism that economic data tomorrow will show U.S. gross domestic product expanded at a faster pace than economists’ estimates, oil prices recovered as well. Forecasts that U.S. crude inventories probably fell again last week as refiners on the Gulf Coast reduced their assets for tax savings at the end of the year, also lent support.

ICE gasoil Januari is expected to open 1.50 to 3.00 dollars down at about 779.00 dollars/ton after settling at 776.75 dollars (official settlement price) Tuesday night. This was 12.50 dollars above Monday's settlement. Volume with some 41.200 deals about on average.

The lateral trendchannel of the crude contract is still intact, yet prices have settled at the upper limits of the range. The 90.00 dollar resistance was temporarily breached Tuesday and technical analysts predict another attempt for today. Above this level, technical buying orders will be triggered. Both Stochastic and RSI indicator give bullish signals this morning. The first support for the WTI crude is seen at 89.00 dollars today, the first resistance at 90.10 dollars.

U.S.

Nymex Access: Oil prices are little changed in Asian trading hours and NYMEX electronic trading this morning, taking their breath after Tuesday's rise. The stronger euro keeps market participants from taking profit. No news in the markets. The traded volume is below average.

APIs: crude oil -5.796; distillates +0.016; gasoline -2.905 million barrels vs previous week. Refinery utilization -0.7%

DOEs: due out tonight.

Forecasts: crude oil -1.1; distillates -0.8; gasoline +0.5 million barrels vs previous week. Refinery utilization -0.2%

Houston (ex-wharf indications 21/12)

380 cst $499
180 cst $520
MDO $783

Very tight avails for 180 cst

New Orleans (ex wharf indications 21/12)

380 cst $502
180 cst $523
MDO $786

Singapore (correct as of 1430hrs LT - delivered indications)

Crude is surging with WTI +$1.58. Singapore paper is less bullish with Jan +$1.50 for 180 cst and +$0.75 for 380 cst, and for Feb 180 cst +$1.55 and 380cst +$0.70 with MGO Jan contracts at +$1.30 and for Jan at +$1.24. The cargo market is reacting to crude and paper with 180cst +$3.50, 380cst +$3.43 and MGO +$0.68.

The Singapore fuel oil market was up only $3.5/mt in the wake of previous stronger crude closing during Platts Window. The Asian fuel oil crack spread continued to weaken as fuel oil values lagged the crude strength. The delivered bunker premium hovered at $2.0/mt above cargo prices Yesterday. Markets are trading up today.

High premiums for prompt deliveries.

380 cst $510
180 cst $523
MGO $781

Fujairah (delivered indications 22/12)

380cst: $504
180cst: $541
MGO: $800

Rotterdam (delivered indications)

Yesterday (Only barge trade deals of >2 KT reported) In the MOC 56KT was traded between 487.50-491.50 with Gunvor as the main seller to Koch and BP as the main buyers.

The NWE HSFO markets are well supplied, although the open Eastern arbitrage supports the local markets. The HSFO Med markets are oversupplied and sluggish, with cargoes to NWE starting to become more attractive. For the LSFO there are some cargoes seen moved from NWE to the Med, although the arbitrage is not considered to be open yet. The five weeks maintenance shut down of the Fos Sur Mer ExxonMobil refinery, scheduled mid Jan may tip the balance. The NWE LSFO markets are also still well supplied, with stored product entering the market and product arriving out of the US. The continuing cold weather however is lending some support.

Indications for delivered bunkers:

380cst: $495
(1.0%): $512
180cst: $518
(1.0%): $535 (very low avails)
DMB: N/A
MGO 0.1%S: $784