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Technical indicators: Neutral to bullish

Crude oil prices regained some ground this morning after the previous days' losses. WTI-Brent spread widened to over 12.00 dollars, mainly due to Cushing oversupply and increased NWE demand.

Yesterday, oil prices lost most of their earlier gains in late NYMEX session and after-hour trading as negative US economy data and talk that OPEC migth raise its output quota weighed.

ICE Gasoil February settled at 817.00 dollars (official settlement price) Thursday night. This was 7.00 dollars above Wednesday's settlement. Volume with some 44,200 deals below average.

The chart for NYMEX crude oil and the ones for the ICE futures have diverged. While the WTI chart is in a steep, short-term downtrend, the other futures are ranging well within their long-term uptrend, showing only minor downward corrections. High Cushing oil stocks are currently weighing on WTI prices. ICE and NYMEX products are seen rather following the brent for the time being. Given that the WTI crude's subsequent months quote above 90.00 dollars for a barrel, the long-term outlook is bullish. RSI and Stochastic indicator for NYMEX crude are neutral, while the Stochastic for the heating oil in New York and for ICE futures gives bullish signals. The first resistance of the WTI crude is seen at 86.75 dollars, the first support at 85.20 dollars. The first support for the brent is seen at 97.15 dollars, the first resistance at 99.00 dollars.

U.S.

NYMEX losing: Oil crude futures traded a bit lower in Asian trading hours and electronic Globex trade this morning, falling to a near two-month low on weak economic data and oversupply while a rosier outlook for Europe supported the Brent. The traded volume is well above average.

Houston (ex-wharf indications 27/1)

380 cst $517
180 cst $556
MDO $838

Very tight avails for 180 cst

New Orleans (ex wharf indications 27/1)

380 cst $519
180 cst $559
MDO $841

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

Crude is back on its bearish track with WTI -$1.08. Singapore paper is yet to react, gaining with Feb +$3.30 for 180 cst and +$3.75 for 380 cst, and for Mar 180 cst +$2.80 and 380cst +$3.25 with MGO Feb contracts at +$0.25 and for Mar at +$0.24. The cargo market is now reacting to the bullish note the week stared with with 180cst +$4.31, 380cst +$4.24 and MGO +$1.56.

The Singapore fuel oil markets were up $4.00/mt during the Platts window yesterday. The Singapore heavy residual inventory reported a build of 0.52 mbbl to 19.08 mbbl. The lack of on specs bunker grade products have pushed delivered bunker premiums over $18.00 above cargo prices yesterday. Bunker fuel swaps gained a few dollars along the curve both in Rotterdam and Singapore. Forward curve maintains backwardation in the front in both markets, though it is a little less pronounced for Rotterdam papers. Both markets are trading higher today.

High premiums for prompt deliveries.

380 cst $556
180 cst $566
MDO $826

Fujairah (delivered indications 28/1)

380cst: $565
180cst: $593
MGO: $894

Rotterdam (delivered indications)

Indications for delivered bunkers:

380cst: $515
(1.0%): $525
180cst: $532
(1.0%): $544 (very low avails)
MGO 0.1%S: $822