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Technical indicators: Neutral to bullish

Crude-oil futures were rising this morning, ahead of US data, testing the first resistance of 86.75. Yesterday's bearish inventory data may lead to some profit taking.

Oil prices rose in late NYMEX session and after-hour trading yesterday, the WTI front month contract rebounding after six straight days of losses, after better-than-expected U.S. home sales data and a pledge by the Federal Reserve to keep monetary policy steady drummed up market sentiment. President Barack Obama's call for lower corporate taxes also spurred hopes for higher profits and stronger energy demand. Surprisingly, rising U.S. crude inventories that climbed more than expected last week as imports increased and refinery utilization dropped, had not much influence on prices. Brent crude's premium against the WTI leaped to over 10.00 dollars.

ICE Gasoil February settled at 810.00 dollars (official settlement price) Wednesday night. This was 11.00 dollars above Tuesday's settlement. Volume with some 58,500 deals on average.

Oil prices corrected modestly upwards yesterday but still remain well within the medium-term downtrend. The Stochastic indicator gives bullish signals while the RSI lingers without momentum. The first resistance of the WTI crude is seen at 87.75 dollars, the first support at 86.00 dollars. Only if the first resistance is breached will oil markets start becoming bullish again.

U.S.

NYMEX losing: Oil futures traded a bit lower in Asian trading hours and electronic Globex trade this morning, failing to extend yesterday's gains as the rise in US crude and gasoline stockpiles weigh on prices. The WTI crude is holding just above 87.00 dollars for a barrel. The traded volume is well above average.

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

DOEs: crude oil +4.836; distillates -0.140; gasoline +2.404 million barrels vs previous week. Refinery utilization -1.2%

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

Houston (ex-wharf indications 26/1)

380 cst $508
180 cst $551
MDO $833

Very tight avails for 180 cst

New Orleans (ex wharf indications 26/1)

380 cst $510
180 cst $553
MDO $836

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

Crude is creeping back up with WTI +$0.08. Singapore paper is reflecting it with Feb +$4.25 for 180 cst and +$3.70 for 380 cst, and for Mar 180 cst +$3.55 and 380cst +$3.65 with MGO Feb contracts at +$1.48 and for Mar at +$1.12. The cargo market is slowing, but not yet turning with 180cst -$0.93, 380cst -$1.32 and MGO -$0.26.

The Singapore fuel oil markets were down only $1.00/mt despite the previous lower crude closing as crude strengthened during the Platts window. Heavy buying interests in the fuel oil swaps have also supported the market, strengthening the Asian crack spread. There is not much change to the current tight fundamentals with current delivered bunker premiums pricing more than $16.00/mt above cargo prices yesterday. Markets are trading higher today.

High premiums for prompt deliveries.

380 cst $549
180 cst $560
MDO $824

Fujairah (delivered indications 27/1)

380cst: $565
180cst: $602
MGO: $893

Rotterdam (delivered indications)

Indications for delivered bunkers:

380cst: $515
(1.0%): $527
180cst: $542
(1.0%): $554 (very low avails)
MGO 0.1%S: $824