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Technical indicators: neutral to bullish

Oil prices bounce between gains and losses, as investors eye the Libyan situation and the rest of the North African /Middle East region.

Oil prices climbed Yesterday as Iran clamped down on anti-government protesters and unrest in the Middle East threatened to keep energy prices high for months to come. AIP data were also surprisingly bearish. WTI breached the 100 dollar line, many resistance lines were breached and buying orders were followed.

ICE Gasoil contract for March delivery settled at 940.75 dollars Tuesday night. This was 8.50 dollars above Monday's settlement. Volume with some 41,400 deals slightly below average average.

The Stochastic of Brent turned to bullish this morning and is giving a buying signal, while the Stochastic of WTI remains unclear. Oil prices may decline slightly this morning due to profit taking, but analystes are seen solide support line at 115.40 US dolllars of Brent, and 99.81 dollars of WTI. The first support for the WTI crude is seen at 99.80 dollars, the first resistance at 100.70 dollars. The Brent's first resistance is seen at 116.75 dollars, the first support is at 115.40 dollars.

U.S.

Nymex Access losing: Oil futures declining slightly due to profit taking this morning, after settling at a near 2.5 year high as tensions in Libya ratcheted up, spurring fears other oil producers in the Middle East and North Africa could face similar revolts while crude and gasoline stocks unexpectedly feel in the United States. The traded volume is slightly above average.

APIs: Crude Oil -1.080; distillates -1.443; gasoline -4.898 million barrels vs previous week. Refinery utilization +0.3%

DOEs: Due out tonight.

Forecasts: Crude Oil +1.000; distillates -1.200; gasoline +0.200 million barrels vs previous week. Refinery utilization +0.5%

Houston (ex-wharf indications 1-3)

380 cst $637
180 cst $660
MDO $947

Very tight avails for 180 cst

New Orleans (ex wharf indications 1-3)

380 cst $640
180 cst $663
MDO $951

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

Crude is surging still with WTI +$2.40 Singapore paper is reflecting it with +$7.90 for 180 cst and +$7.90 for 380 cst for March, and for Apr 180 cst +$7.95 and 380cst +$7.95 with MGO March contracts at +$3.30 and for Apr at +$3.27 The cargo market is ignoring crude and paper, losing with 180cst -$5.58, 380cst -$4.06 and MGO -$1.12

The Singapore fuel oil markets fell more than $4.00/mt yesterday during the Platts window on lower previous crude closing. The Singapore supplies have eased as reflected in the softening of the cargo premium to $7.00- 8.00. The bunker delivered premiums also slipped, ranging of $11.00- 15.00 above cargo prices yesterday. Bunker fuel swaps gained app. $1.00/mt along the curve both in Rotterdam and Singapore. Visc spread between Singapore 180cst and 380cst papers narrowed a bit and for April is assessed at $12.50. This morning both markets are trading up.

High premiums for prompt deliveries.

Fujairah (delivered indications 2-3)

380cst: $640
180cst: $670
MGO: $995

Rotterdam

Indications for delivered bunkers:

380cst: $607
(1.0%): $637
180cst: $625
(1.0%): $659 (very low avails)
MGO 0.1%S: $959