---

Technical indicators: neutral to bullish

Crude oil futures rebounded from an 11-week low on signs U.S. stockpiles are shrinking and as political protests in the Middle East spread to other Middle East countries like Libya and Bahrain.

Oil futures settled at their lowest price in over two months last night as concerns about high U.S. crude supplies overtook worries of spreading unrest in the Middle East. The WTI breached its first support line at 84.60 US dollars and many stop-loss orders were followed.

ICE Gasoil contract for March delivery settled at 867.00 dollars Tuesday night. This was 4.50 dollars below Monday's settlement. Volume with some 85,500 deals well above average.

The Stochastic of ICE Brent is bearish today, while the Stochastic of NYMEX C.Oil remains in the overbought area, but with no clear signals. The Brent has a short-term support line at 101.65 dollars, should this line be breached many stop-loss selling orders will be triggered. The first support for the WTI crude is seen at 84.30 dollars, the first resistance at 85.45 dollars. The brent's first support is at 101.65 dollars, the first resistance at 103.80 dollars.

U.S.

Nymex Acces flat: Oil futures are flat in Asian trading hours and electronic Globex trade this morning, taking their breath after Tuesday's hefty losses. The traded volume is far below average.

API's: crude oil -0.354; distillates -1.176; gasoline +1.235 million barrels vs previous week. Refinery utilization -2.7% Cushing +0.250

DOE's: due out tonight.

Forecasts: crude oil +1.200; distillates -1.200; gasoline +0.800 million barrels vs previous week. Refinery utilization -0.2%

Houston (ex-wharf indications 15/2)

380 cst $577
180 cst $597
MDO $913

Very tight avails for 180 cst

New Orleans (ex wharf indications 15/2)

380 cst $579
180 cst $600
MDO $916

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

Crude is gaining some bearish momentum with WTI -$0.80 Singapore paper is turning bearish again as well with -$7.10 for 180 cst and -$7.55 for 380 cst for March, and for Apr 180 cst -$7.15 and 380cst -$7.55 with MGO March contracts at -$1.41 and for Apr at -$1.42 The cargo market is ignoring the drops with 180cst +$11.84, 380cst +$11.87 and MGO +$2.06.

The Singapore fuel oil was up app. $12.00 during the Platts window yesterday. The Singapore market continues to be weigh down by tight supplies as cargo premium remains more than $12.00/mt and the bunker delivered premium maintaining more than $22.50/bbl above cargo price. Bunker fuel swaps lost a few dollars along the curve both in Rotterdam and Singapore though losses were more pronounced in Singapore papers where change in the front of forward curve was more than -$2.00/mt. Forward curve remains backwardated in both markets- remarkably more pronounced in Singapore papers where Calendar 12 Swaps are offered at more than $25.00 discount versus spot price. This morning both markets are trading slightly lower.

High premiums for prompt deliveries.

380 cst $619
180 cst $632
MDO $870

Fujairah (delivered indications 16-2)

380cst: $628
180cst: $668
MGO: $943

Rotterdam

Indications for delivered bunkers:

380cst: $566
(1.0%): $580
180cst: $579
(1.0%): $595 (very low avails)
MGO 0.1%S: $863