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Technical indicators: neutral to bullish

Crude oil futures edged lower in the morning trading on profit taking and supported by the recovering dollar. During the day the release of US data underpinned the prices. The Egyptian prevention of Iranian warships entering the Suez canal took some tensions out of the markets.

As in the past days, oil futures traded in a narrow lateral range Yesterday morning, market participants were eyeing the release of US petroleum inventories and macro-economic news in the afternoon. The losses of the US dollar in the wake of some positive US data and worries over increasing political tensions in North Africa and the Middle East lent some support after the opening of NYMEX session. The DOE data at 4:30 p.m. were not seen bullish enough to help oil prices above their strong resistance lines. The decisive bullish momentum was news that Iran has sent two warships through the Suez Canal to the Mediterranean Sea, hightening the possibility that the tensions in the region will escalate and oil production and transport will be affected. As the crude oil in New York is still weighed down by high US oil stocks, the spread between the brent and the WTI reached a record high of 19 dollars.

ICE Gasoil contract for March delivery settled at at 867.75 dollars Wednesday night. This was 0.75 dollars above Tuesday's settlement. Volume with some 89,200 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 Wednesday's rally. The brent lingers short below a 2-year high of 104,00 dollars for a barrel, supported by the tensions between Iran and Israel. The traded volume is very thin.

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: crude oil +0.860; distillates -3.096; gasoline +0.205 million barrels vs previous week. Refinery utilization -3.5%

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

Houston (ex-wharf indications 16/2)

380 cst $580
180 cst $601
MDO $887

Very tight avails for 180 cst

New Orleans (ex wharf indications 16/2)

380 cst $582
180 cst $604
MDO $891

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

Crude is bearish still with WTI -$0.29 Singapore paper is turning bullish ahead of crude with +$1.00 for 180 cst and +$1.70 for 380 cst for March, and for Apr 180 cst +$1.05 and 380cst +$1.50 with MGO March contracts at +$1.53 and for Apr at +$1.51 The cargo market is starting to react to crude's losses with 180cst -$8.39, 380cst -$8.99 and MGO -$1.24.

The Singapore fuel oil market was down more than $8.00/mt during the Platts window yesterday tracking crude movement. The cargo premiums also eased lower now ranging at $11.50-13.00 level. Bunker delivered premiums are seen at the lower side of $20.00/mt above cargo price. This morning Rotterdam market is trading flat compared to yesterday's closing while Singapore is traded slightly lower.

High premiums for prompt deliveries.

380 cst $615
180 cst $626
MDO $880

Fujairah (delivered indications 17-2)

380cst: $627
180cst: $666
MGO: $950

Rotterdam

Indications for delivered bunkers:

380cst: $564
(1.0%): $578
180cst: $586
(1.0%): $598 (very low avails)
MGO 0.1%S: $878