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Technical indicators: neutral to bullish

Oil prices held steady in electronic trading in the morning as forecast, investors eyeing the release of DOE data and the testimony of FED Chairman Ben Bernanke later at 16:00.

Yesterday, oil futures consolidated on their high level in electronic morning trading and collapsed at midday, breaching several support lines despite a weaker dollar. Rumours saying that Egypt's president Mubarak was ready to hand over power weighed on the prices. After the opening of NYMEX session in New York, oil futures pared all of their losses when the dollar kept on loosing ground after a positive statement of the FED on the US economy. Strikes at the Suez Canal menacing to contrain shipping traffic boosted ICE prices which then settled closed to their day's highs while profit taking weighed on the WTI crude and US gasoline prices.

ICE Gasoil contract for February delivery settled at 849.75 dollars Tuesday night. This was 4.75 dollars above Monday's settlement. Volume with some 52,200 deals on average.

With the exception of WTI crude, which is in a clear downtrend for the time being, ICE futures and NYMEX heating oil contract did only correct slightly downwards, remaing well within their uptrend. Both RSI and Stochastic indicators are in neutral territory across the board today. The Stochastic will become bullish as soon as the two lines cross. The first support for the WTI crude is seen at 86.10 dollars today, the first resistance at 88.00 dollars. The brent's first support is the psychologically important 100.00 dollar line, the first resistance is seen at 101.00 dollars.

U.S.

Nymex Acces gaining: Oil futures are flat in Asian trading hours and electronic Globex trade this morning, traders being cautious ahead of the release of the DOE report later today. The traded volume is on average.

APIs: crude oil -0.558; distillates -0.538; gasoline +3.212 million barrels vs previous week. Refinery utilization +0.1%

DOEs: due out tonight.

Forecasts: crude oil +2.300; distillates -1.200; gasoline +2.000 million barrels vs previous week. Refinery utilization -0.2%

Houston (ex-wharf indications 8/2)

380 cst $541
180 cst $574
MDO $868

Very tight avails for 180 cst

New Orleans (ex wharf indications 8/2)

380 cst $543
180 cst $576
MDO $871

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

Crude is looking for direction, losing only marginally with WTI -$0.01 Singapore paper is gaining bullish momentum with +$4.80 for 180 cst and +$4.95 for 380 cst for Feb, and for March 180 cst +$3.50 and 380cst +$2.40 with MGO Feb contracts at +$0.81 and for Mar at +$0.83 The cargo market is in line with paper, gaining with 180cst +$3.81, 380cst +$2.77 and MGO +$0.63

The Singapore fuel oil markets extended the strength and were assessed up by more than 2.50 dollars during the Platts window. The Asian fuel oil crack strengthened considerably on strong fuel oil swaps buying interest. The delivered bunker premiums remained high; ranging 16.00 to 22.00 dollars above cargo prices yesterday. Bunker fuel swaps gained a few cents in Rotterdam and a bit more in Singapore in the front of the curve, while loosing up to 1.00 dollars in the backend. The East-West spread remains wide with March assessed at 39.00 dollars/mt. Both markets are trading higher today.

High premiums for prompt deliveries.

380 cst $595
180 cst $607
MDO $860

Fujairah (delivered indications 9-2)

380cst: $620
180cst: $661
MGO: $928

Rotterdam

Indications for delivered bunkers:

380cst: $545
(1.0%): $555
180cst: $571
(1.0%): $581 (very low avails)
MGO 0.1%S: $858