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Technical indicators: neutral

Crude-oil futures were flat this morning as the market processed conflicting supply signals, including expectations that a report due later in the day will show rising U.S. inventories and Egyptian protests that could threaten oil shipments.

Yesterday, oil futures consolidated in electronic trading as expected, and started to rise after the opening of NYMEX session as the dollar fell and concerns that anti-government protests in Egypt would eventually lead to a disruption in oil transports and thus a supply shortage, lent support. NYMEX crude decoupled once again from the other futures and declined as high US stocks still weigh.

The Organization of the Petroleum Exporting Countries has refrained from boosting production and sees no supply shortage. OPEC member Libya said the group does not need to meet to discuss oil policy in February because the market was well supplied and $100-per-barrel prices were justified.

ICE Gasoil contract for February delivery settled at 835.50 dollars Monday night. This was 11.25 dollars above Friday's settlement. Volume with some 47,900 deals slightly below average.

Technical analysts expect market participants to take profit today as the brent resistance at 102.00 dollars had proved strong Tuesday and the DOE is expected to show a similar build in US crude stocks as did the API last night. The Stochastic indicator still gives a bullish signal for all contracts, but should the two lines cross, selling signals will be triggered. The RSI remains in neutral territory. The first support for the WTI crude is seen at 90.30 dollars today, the first resistance at 92.00 dollars. The brent's first support is at 101.15 dollars and the first resistance at 102.00 dollars.

U.S.

Nymex Access losing: Oil futures are easing in Asian trading hours and electronic Globex trade this morning as market participants take profit after Tuesday's gains. The Brent trades close to a 28-month high while the WTI crude is lingering below 91.00 dollars, thus widening again the spread between the two crudes to over 11.00 dollars for the barrel. The traded volume is above average.

APIs: crude oil +3.770; distillates -1.138; gasoline +3.909 million barrels vs previous week. Refinery utilization +3.5%

DOEs: due out tonight.

Forecasts: crude oil +2.600; distillates -1.400; gasoline +2.200 million barrels vs previous week. Refinery utilization -0.4%

Houston (ex-wharf indications 1/2)

380 cst $537
180 cst $572
MDO $858

Very tight avails for 180 cst

New Orleans (ex wharf indications 1/2)

380 cst $539
180 cst $574
MDO $861

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

Crude is back on its bearish track with WTI -$0.87 Singapore paper is ignoring the turn, gaining with +$16.75 for 180 cst and +$16.00 for 380 cst for Feb, and for March 180 cst +$13.80 and 380cst +$15.70 with MGO Feb contracts at +$1.72 and for Mar at +$1.74 The cargo market is bullish still with 180cst +$12.64, 380cst +$10.29 and MGO +$0.98

The Singapore fuel oil markets were up more than $10.25/mt during the Platts window yesterday. There is not much improvements to the tight fundamentals in Singapore and is clearly reflected in the high delivered bunker premiums. It was assessed around $20.0 above cargo prices yesterday. Regions in Asia and Singapore will be closed for the Chinese New Year celebrations. Singapore market will reopen next Monday. Bunker fuel swaps gained more than $12/mt in the front both in Rotterdam and Singapore. Forward curve maintains backwardation in the front in both markets. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $591
180 cst $600
MDO $858

Fujairah (delivered indications 2-2)

380cst: $600
180cst: $635
MGO: $915

Rotterdam

Indications for delivered bunkers:

380cst: $545
(1.0%): $559
180cst: $560
(1.0%): $575 (very low avails)
MGO 0.1%S: $860