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Technical indicators: neutral to bullish

Oil prices remain at a high level despite some profit taking. Libya output cuts will be compensated by the other OPEC members.

Yesterday, the prices rose in the morning, breaching first resistance lines as unrest in Libya continued, cutting a large chunk of Libya's output of 1.6 million barrels per day. The IEA said it estimates the Libyan crisis has removed less than 1% of global production from the market, while some international oil firms operating in the country have said output has dropped as much as 75%. Oil futures then dropped later in the day as Saudi Arabia, the U.S. and the International Energy Agency tried to assure markets that global supplies remain adequate.

ICE Gasoil contract for March delivery settled at 925.00 dollars Thursday night. This was 14.50 dollars above Wednesday's settlement. Volume with some 97,000 deals well above average.

The Oil prices are rebounding in Asian trading hours and electronic Globex trade this morning as fears of supply shortages linger despite assurances by Saudi Arabia that it would step in to fill any shortfall. The traded volume is well above average.

Oil prices tumbled yesterday after ICE gasoil and brent resistance lines proved strong. Markets being overbought, the Stochastic indicators gave across-the-board selling signals. Today all contracts are in a steep uptrend despite Thursday's decline. The downward correction is finished for the time being, technical analysts say and forecast a consolidation with a bullish tendency for the day. More technical selling is only triggered when the short-term support lines are breached. RSI and Stochastic indicators are both not giving any clear signals this morning, but the RSI is still in overbought territory. The first support for the WTI crude is seen at 96.00 dollars, the first resistance at 100.00 dollars. The brent's first resistance is seen at 115.00 dollars, the first support is at 109.60 dollars.

U.S.

Nymex Acces gaining: Oil futures prices are rebounding in Asian trading hours and electronic Globex trade this morning as fears of supply shortages linger despite assurances by Saudi Arabia that it would step in to fill any shortfall. The traded volume is well above average.

APIs: crude oil +0.163; distillates -0.534; gasoline -1.621 million barrels vs previous week. Refinery utilization -2.5%

DOEs: crude oil +0.822; distillates -1.333; gasoline -2.798 million barresl vs previous week. Refinery utiliztion -1.8%

Forecasts: crude oil +1.100; distillates -1.300; gasoline +0.850 million barrels vs previous week. Refinery utilization +0.5%

Houston (ex-wharf indications 24/2)

380 cst $632
180 cst $655
MDO $964

Very tight avails for 180 cst

New Orleans (ex wharf indications 24/2)

380 cst $635
180 cst $658
MDO $967

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

Crude is losing some of its gains with WTI -$3.90 Singapore paper is mirroring crude with -$25.50 for 180 cst and -$24.05 for 380 cst for March, and for Apr 180 cst -$25.50 and 380cst -$24.05 with MGO March contracts at -$3.77 and for Apr at -$3.75 The cargo market is fully reacting to Yesterday's surge with 180cst +$39.68 380cst +$41.63 and MGO +$7.85.

The Singapore fuel oil markets were tracking the strong crude rally during the Platts window yesterday with prices being up around $40.00. The Singapore heavy residual inventory saw a build of 3.25 mbbl back to 20.18 mbbl. Though products are available, most of them are not on specs bunker grade products. Supply situation has slightly improved and the bunker delivered premiums continued to soften to a range of $13.00-16.00 above cargo price yesterday. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $645
180 cst $657
MDO $936

Fujairah (delivered indications 25-2)

380cst: $647
180cst: $674
MGO: $990

Rotterdam

Indications for delivered bunkers:

380cst: $608
(1.0%): $623
180cst: $625
(1.0%): $642 (very low avails)
MGO 0.1%S: $925