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Technical indicators: neutral to bullish

Oil prices edge higher this morning, supported by the stronger Euro and expectations on positive data from the US economy later this afternoon. The cold temperatures at the US Eastcoast still lend some support. But meteorologists forecast warmer weather in the weeks to come.

Yesterday, the oil prices pared some of the earlier losses in late NYMEX session and after-hour trading, helped up by a weaker dollar/stronger euro and recovering equity markets. Oil had dipped in a thin session after briefly hitting its third successive 26-month high.

ICE Gasoil January is expected to open unchanged at 788.00 dollars/ton after settling at 777.50 dollars (official settlement price) Monday night. This was 1.50 dollars below Friday's settlement. Volume with some 9,300 deals way below average.

The short-term uptrend is still intact. Both Stochastic and RSI indicator remain in overbought territory but are not yet giving any selling signals. The first support for the WTI crude is seen at 90.75 dollar today, the first resistance at 91.90 dollars.

U.S.

Survey of NYMEX Trade: Oil prices are supported in Asian trading hours and NYMEX electonic trading this morning, WTI crude rising above 91.00 dollars for a barrel and hovering just below it's 26-month high hit in the previous session, supported by a weaker dollar. No news in the markets. The traded volume is above average.

US petroleum inventories: Due to the Christmas holidays, API data will be released Wednesday at 22:30, and DOE is expected on Thursday at 17:00 hrs.

Crude oil: -2.8; distillates: -0.6; gasoline: +1.5 million barrels vs previous week.

Houston (ex-wharf indications 27/12)

380 cst $500
180 cst $520
MDO $783

Very tight avails for 180 cst

New Orleans (ex wharf indications 27/12)

380 cst $503
180 cst $523
MDO $787

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

Crude is easing somewhat after the recent rally with WTI -$0.28 Singapore paper is in line with crude with Jan -$3.16 for 180 cst and -$3.10 for 380 cst, and for Feb 180 cst -$3.24 and 380 cst -$3.15 with MGO Jan contracts at -$0.78 and for Feb at -$0.78. The cargo market is not yet reacting with 180 cst +$1.02 , 380 cst +$1.09 and MGO +$0.74.

High premiums for prompt deliveries.

380 cst $506
180 cst $517
MDO $785

Fujairah (delivered indications 28/12)

380cst: $513
180cst: $543
MGO: $805

Rotterdam (delivered indications)

Friday (Only barge trade deals of >2 KT reported) In the MOC 94KT was traded between 485.25-487.00 with Petroned and Koch as the main sellers to Cargill as the main buyer.

The NWE HSFO markets are well supplied. Although there have been three VLCC’s reported for December loading and one for January, the softening Singapore market has put the arbitrage economics in the red. The HSFO Med markets are picking up, with domestic demand discouraging arbitrage fixtures. 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: $492
(1.5%): $502
180cst: $507
(1.5%): $520 (very low avails)
DMB: N/A
DMA: N/A
MGO 0.1%S: $782