---

Technical indicators: neutral to bullish

Oil prices slipped this morning in nervous trading as investors digested Venezuela's proposal for an international peacekeeping mission to avoid a brutal civil war in Libya.

Oil prices bolstered Yesterday as investors eyed growing instability in key Middle East oil producing countries, which could signal another threat to global supplies, after Libya's Muammar Gadaffi ordered airstrikes near Libyan oil facilities. Prices got a further lift following a drawdown in U.S. oil stocks, data from the U.S. Energy Information Administration showed. 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 and WTI are both bullish this morning and are giving a buying signal. Oil prices declined this morning due to profit taking, but analystes are seen a upward-testing for WTI at 103.41 dollars for the coming days. The first support for the WTI crude is seen at 99.20 dollars, the first resistance at 103.00 dollars. The Brent's first resistance is seen at 117.80 dollars, the first support is at 113.00.

U.S.

Nymex Access losing: Oil futures declining slightly due to profit taking this morning, brent breached support llines and many stoop-loss selling orders were triggered, following WTI's sharp decline. Oil prices settled Yesterday above 102 dollars per barrel for the first time since September 2008 as fighting escalated in Libya and petroleum demand grew in the United States. The traded volume is above everage.

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

DOEs: Crude Oil -0.364; distillates -0.751; gasoline -3.590 million barrels vs previous week. Refinery utilization +1.5%

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

Houston (ex-wharf indications 2-3)

380 cst $642
180 cst $660
MDO $987

Very tight avails for 180 cst

New Orleans (ex wharf indications 2-3)

380 cst $645
180 cst $663
MDO $951

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

Crude is gaining bullish momentum with WTI +$2.16 Singapore paper is mixed, cooling with +$0.50 for 180 cst and -$1.75 for 380 cst for March, and for Apr 180 cst +$1.25 and 380cst -$1.45 with MGO March contracts at +$0.85 and for Apr at +$0.84 The cargo market is adopting the bullish sentiment with 180cst +$8.03, 380cst +$6.92 and MGO +$3.34

The Singapore fuel oil markets were up only more than $7.00/mt yesterday during the Platts window despite stronger previous crude closing. The volatile crude movement have also dampened paper trades as market remains cautious. The Asian fuel oil crack weakened yesterday as fuel oil swaps fails to keep pace with crude. The bunker delivered premiums ranging of $11.00- 12.00 above cargo price yesterday. Bunker fuel swaps following general trend in the market also gained more than $10.00 along the curve both in Rotterdam and Singapore. Backend of the curve still remains weaker leaving both markets in backwardation with Singapore Cal12 papers trading at the discount of app. $12.00 compared to spot prices. This morning both markets are traded lower.

High premiums for prompt deliveries.

380 cst $644
180 cst $660
MDO $970

Fujairah (delivered indications 3-3)

380cst: $639
180cst: $670
MGO: $994

Rotterdam

Indications for delivered bunkers:

380cst: $609
(1.0%): $641
180cst: $626
(1.0%): $685 (very low avails)
MGO 0.1%S: $965