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Technical indicators: neutral to bullish

Oil prices rose above 91 dollar a barrel this morning amid mixed U.S. crude and gasoline supply figures and violent street clashes in Egypt. U.S. energy supply data gave mixed signals about the strength of consumer demand. The DOE said Wednesday that crude supplies rose less than expected last week but that gasoline inventories jumped more than analyst forecasts to the highest level since March 1993.

After showing little volatility in electronic trading, oil prices started rising after Yesterday's opening of NYMEX session, on better-than-expected ADP employment data and underlying support from the riots in Egypt. Oil futures rose even higher after the release of DOE data which held no surprise for investors. WTI crude settled just short of 92.00 dollars per barrel, still weighed down by high stocks, while the Brent surpassed 102.00 dollars. Fears that unrest in Egypt and Tunisia will spread to other countries in the Middle East and threaten the region's oil exports overshadowed the bearish effect of soaring crude oil and gasoline inventories, prompting investors to move to safer assets, or the sidelines. The chance of contagion to a country that is systemically important for oil markets still remains relatively low, but it's the combination of that possibility and the importance of oil flows from the Red Sea to the Mediterranean through the Suez Canal that is building a premium into prices.

ICE Gasoil contract for February delivery settled at 858.25 dollars Wednesday night. This was 11.75 dollars above Tuesday's settlement. Volume with some 47,700 deals about on average.

The Stochastic indicator is in overbought territory, giving some bearish signals for the WTI crude, but is still bullish at the Brent chart. The RSI is still seen neutral, but is set to enter overbought territory. The first support for the WTI crude is seen at 90.00 dollars today, the first resistance at 92.00 dollars. The brent's first support is at 103.00 dollars and the first resistance at 105.00 dollars. NYMEX crude resistance at 92.00 dollars is seen as a key resistance. Should the line prove strong, analysts expect market participants to take profit, yet the Brent's strong 103.00 dollar support is seen limiting the losses.

U.S.

Nymex Acces gaining: Oil futures are rising in Asian trading hours and electronic Globex trade this morning, extending Wednesday's late gains on technical buying. Brent crude tops 103.00 dollars for a barrel, the highest in 28 month, while the WTI crude is lingering below 92.00 dollar. The spread between the two crudes is still over 11.00 dollars. The traded volume is on average.

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

DOEs: crude oil +2.594; distillates -1.579; gasoline +6.154 million barrels vs previous week. Refinery utilization +2.7%

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

Houston (ex-wharf indications 2/2)

380 cst $537
180 cst $572
MDO $858

Very tight avails for 180 cst

New Orleans (ex wharf indications 2/2)

380 cst $539
180 cst $574
MDO $861

Singapore (Closed due to Lunar New Year)

Ahead of a long weekend due to Lunar New Year, the Singapore fuel oil markets were up by more than $19.00/mt during the Platts window. The delivered bunker premiums gained another $1.00 and were over $20.00 above cargo prices. Bunker fuel swaps gained more than $8.00/mt in Rotterdam while Singapore 180cst Cargo FOB papers were up by more than $11.00/mt in the front. Forward curve maintains backwardation in both markets, though it is more pronounced in Singapore papers. Both markets are trading higher this morning.

Fujairah (delivered indications 3-2)

380cst: $605
180cst: $643
MGO: $919

Rotterdam

Indications for delivered bunkers:

380cst: $551
(1.0%): $563
180cst: $578
(1.0%): $593 (very low avails)
MGO 0.1%S: $871