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Technical indicators: neutral to bullish

Oil prices are easing during midday on profit taking after the recent price rally. Oil breached its first support line. Traders are waiting for US economic news in the afternoon.

With Libya still in chaos and little information available about the status of its oil fields and ports, world oil prices rose on Friday and finished about 13 per cent higher for the past week. The Libyan rebellion has all but shut down exports from there, and traders say it's hard to gauge how much world supplies - and prices - will be affected as similar uprisings unfold in North Africa and the Middle East.

ICE Gasoil contract for March delivery settled at 921.25 dollars Friday night. This was 3.75 dollars below Wednesday's settlement. Volume with some 55,200 deals on average.

Oil Markets are considered being overbought, the Stochastic indicators gave across-the-board selling signals. Today all contracts are in a steep uptrend following Friday's high. The downward correction is finished for the time being, technical analysts say and forecast a consolidation with a bullish tendency for the day. Analystes are seen an important resistance line at 100 US dolllars of WTI C.Oil, should this be breached, many buying orders will be following. 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 98.35 dollars, the first resistance at 100.00 dollars. The brent's first resistance is seen at 115.00 dollars, the first support is at 103.90 dollars.

U.S.

Nymex Acces gaining: Asian stock markets rose on Monday as financial shares clawed back some of last week's losses and higher oil prices buoyed energy stocks, but gains were capped by fears of further outflows from emerging equities to developed markets. Oil prices continue their rise in Asian trading hours and electronic Globex trade this morning. London crude prices rose by more than 2 dollars a barrel as worsening turmoil in Libya spurred fresh concern about disruptions to oil production. The traded volume is well above average.

Houston (ex-wharf indications 25/2)

380 cst $634
180 cst $657
MDO $944

Very tight avails for 180 cst

New Orleans (ex wharf indications 25/2)

380 cst $636
180 cst $659
MDO $947

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

Crude is back on its bullish track with WTI +$0.70 Singapore paper is cautiously tracking crude with +$1.50 for 180 cst and +$0.90 for 380 cst for March, and for Apr 180 cst +$1.50 and 380cst +$1.00 with MGO March contracts at +$1.67 and for Apr at +$1.66 The cargo market is mixed, not yet reacting to the last turn with 180cst -$26.36 380cst -$24.80 and MGO +$3.68.

The Singapore fuel oil markets gave up some of the gains of more than $24.00/mt after a previous strong rally during the Platts window last Friday. Singapore market fundamentals are easing but recent strong buying interest in the inter-months spreads have strengthened the forward curve more backwardated. The bunker delivered premiums eased to a range of $12.00- 16.00 above cargo price last Friday. Bunker fuel swaps closed last week with a loss of more than $11.00/mt in the front of the curve both for Rotterdam barges and Singapore 180cst cargo FOB papers. Though losses were less pronounced in the backend on the curve, both markets still remain in backwardation. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $645
180 cst $657
MDO $948

Fujairah (delivered indications 28-2)

380cst: $644
180cst: $674
MGO: $990

Rotterdam

Indications for delivered bunkers:

380cst: $606
(1.0%): $623
180cst: $623
(1.0%): $642 (very low avails)
MGO 0.1%S: $932