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Technical indicators: neutral to bearish

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.

Crude prices rose during Yesterday's NYMEX session, with traders snatching up near-term supplies ahead of the March contract's expiry and the Presidents Day holiday, while ICE futures and the heating oil in New York had to accept considerable losses. The euro's rise against the US dollar also supported the WTI. Worse-than-expected US economy data weighed on the US currency and on ICE futures. Thursday's advance also narrowed the spread against the Brent, and traders liquidated their long positions.

ICE Gasoil contract for March delivery settled at at 873.50 dollars Thursday night. This was 3.75 dollars above Wednesday's settlement. Volume with some 60,400 deals above average.

The tensions in the Arab world still support oil prices, while disappointing US economy data weigh. The Brent's first support line at 102.35 dollars will be watched closely today. Should the line be breached, technical selling orders will be triggered. Yet most analysts opt for a technical upward correction after yesterday's hefty losses.

U.S.

Nymex Acces flat: Oil futures are flat in Asian trading hours and electronic Globex trade this morning, as investors struggled to find the right value for the WTI contract which lingers just above 86.00 dollars for a barrel while the brent is regarded overvalued. The traded volume is very thin.

Houston (ex-wharf indications 17/2)

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 rebounding from the previous losses gaining with WTI +$1.10 Singapore paper is mixed with +$2.50 for 180 cst and +$3.30 for 380 cst for March, and for Apr 180 cst +$2.50 and 380cst +$3.30 with MGO March contracts at -$1.24 and for Apr at -$1.22 The cargo market is slowing with 180cst +$0.72, 380cst -$0.67 and MGO +$1.58.

The physical market in Singapore remains fundamentally strong, and cash difference has been surging. East West arbitrage window is open, and March arrivals are expected to be heavier. Visco has been offered for the last few days, but buying interest on visco spread will emerge as physical players start to fix April arbitrage. Delivered 380cst were trading at a premium of $17.00 over mops yesterday. Bunker fuel swaps gained app. $2.00/mt along the curve both in Rotterdam and Singapore. March East/ West spread dropped to around $37.00 yesterday, however this morning is back up and is assessed at $40.00. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $612
180 cst $624
MDO $873

Fujairah (delivered indications 18-2)

380cst: $625
180cst: $664
MGO: $950

Rotterdam

Indications for delivered bunkers:

380cst: $566
(1.0%): $578
180cst: $588
(1.0%): $599 (very low avails)
MGO 0.1%S: $871