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Technical indicators: neutral

Crude-oil futures rebounded from two days of heavy losses. Traders are eyeing the DOE -inventory data and the Federal Open Market Committee's post-meeting statement, both due later in the day.

Yesterday, the surprise drop in Great Britain's gross domestic product in the fourth quarter (-0.5% negative growth) weighed on European equity markets and the oil futures. When prices fell through first support lines, a wave of technical selling orders was triggered and more support lines were breached.

Contrary earlier comments, OPEC confirms they will increase this year's output by 2 percent as crude levels are seen approaching the 100 usd mark. Not all OPEC members were willing to up the output, but the organization wants to respond to the output increase of the non-OPEC countries.

ICE Gasoil February settled at 799.00 dollars (official settlement price) Tuesday night. This was 20.25 dollars below Monday's settlement. Volume with some 60,100 deals slightly above average.

When the WTI crude fell through its first support line Monday, oil prices collapsed in a surprise sell-off, the crude contract hitting the lower limit of a medium-term downtrend. RSI and Stochastic indicators are both in oversold territory for most contracts this morning, paving the way for a short-term upward correction, which will be supported by the ailing dollar. Yet analysts reckon that the crude contract will try the lower limit of the medium-term downtrend again in the course of the days to come. The first support of the WTI crude is seen at 87.25 dollars today, the first resistance at 88.85 dollars.

U.S.

NYMEX gaining: Oil prices rose in Asian trading hours and electronic Globex trade this morning in a technical rebound ahead of weekly US stocks data. The WTI crude is still holding above 86.00 dollars for a barrel. The traded volume is on average.

APIs: crude oil +2.120; distillates -5.022; gasoline +1.720 million barrels vs previous week. Refinery utilization -3.2%

DOEs: due out tonight.

Forecasts: crude oil +0.400; distillates +/--0.0; gasoline +2.600 million barrels vs previous week. Refinery utilization +0.1%

Houston (ex-wharf indications 25/1)

380 cst $504
180 cst $548
MDO $813

Very tight avails for 180 cst

New Orleans (ex wharf indications 25/1)

380 cst $506
180 cst $551
MDO $816

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

Crude is dropping like a stone with WTI -$2.76. Singapore paper is more cautious with Feb -$1.75 for 180 cst and -$1.55 for 380 cst, and for Mar 180 cst -$1.70 and 380cst -$1.60 with MGO Feb contracts at -$0.28 and for Mar at -$0.31. The cargo market is starting to adopt the bearishness with 180cst -$4.77, 380cst -$5.06 and MGO -$1.54.

The Singapore fuel oil markets were down more than $4.50/mt tracking crude weakness during the Platts window. The estimated amount this month is around 3.0 million mt while February is expected to see 3.8- 3.9 million mt. The tight situation should improve next month. The current delivered bunker premiums remain high, ranging $14.0 to $17.0 above cargo prices yesterday. Bunker fuel swaps were down more than $8/mt along the curve yesterday both in Rotterdam and Singapore. Forward curve still remains relatively flat until Q4. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $544
180 cst $554
MDO $820

Fujairah (delivered indications 26/1)

380cst: $555
180cst: $595
MGO: $887

Rotterdam (delivered indications)

Indications for delivered bunkers:
380cst: $511
(1.0%): $519
180cst: $539
(1.0%): $549 (very low avails)
MGO 0.1%S: $815