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Technical indicators: neutral to bearish immediate term / bullish medium term

Oil prices retreat as the US and the OPEC took action to calm supply worries, but remained well above 100 dollars per barrel. White House spokesman Jay Carney told reporters that the US was considering tapping into its strategic oil reserves, however, he noted that the decision would not be based solely on crude oil prices and a major disruption in the flow of oil would be a factor.

Yesterday Brent dropped below 115 dollars a barrel as two Arab newspapers and al Jazeera television said on Monday that the Libyan leader was looking for an exit deal, but there was no official confirmation of the reports. Libyan leader Muammar Gaddafi was looking for a way to step down and end the fighting that has slashed the nation's oil exports, while OPEC's assurances of supply also soothed investors. As much as one million barrels of Libyan output has been disrupted by clashes between Mr Gaddafi and rebels, or about two-thirds of normal production. After a 30 month high, the 107 dollars resistance line for WTI proved strong and prices delined again due to technical sellings.

OPEC oil producers are consulting about a supply boost but many in the group remain skeptical, saying high prices are due to fears of shortage and world supply is comfortable despite the loss of Libyan crude. "We are in consultations about a potential output increase, but have not yet decided," Kuwait's Oil Minister Sheikh Ahmad al-Abdullah Al-Sabah told reporters Today.

ICE Gasoil contract for March delivery settled at 966.25 dollars Friday night. This was 6.75 dollars above Friday's settlement. Volume with some 32,700 deals below average.

The Stochastic of WTI remain bullish in the slightly overbought territory. The steep upward trend continues. Analysts are seen a new high for the Brent at 120 US dollars, which could be breached this week. The first support for the WTI crude is seen at 102.75 dollars, the first resistance at 107.00 dollars. The Brent's first resistance is seen at 117.80 dollars, the first support is at 115.70 dollars.

U.S.

Nymex Access losing: oil prices are continuing their fall on Gaddafi stepdown talk. According to the leading Arab newspaper, Asharq Alawsat, Colonel Muammar Gaddafi has offered to step down as long as his family, his wealth and his family are safe. Gaddafi sent a negotiator to the Interim National Council to relay this message. Gaddafi said he was ready to leave Libya in exchange for the safety of himself and his family being ensured, reported news source Asharq Al-Awsat.

Houston (ex-wharf indications 7-3)

380 cst $637
180 cst $657
MDO $997

Very tight avails for 180 cst

New Orleans (ex wharf indications 7-3)

380 cst $639
180 cst $660
MDO $999

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

Crude is losing after the hefty gains with WTI -$2.03 Singapore paper is mirorring crude with -$5.20 for 180 cst and -$5.30 for 380 cst for March, and for Apr 180 cst -$5.20 and 380cst -$5.00 with MGO March contracts at -$2.30 and for Apr at -$2.11 The cargo market is motionless, awaiting further movements with 180cst +$0.18, 380cst -$0.89 and MGO +$0.94.

The Singapore fuel oil markets were pretty flat on the opening of the week during the Platts window. Despite the stronger crude, fuel oil swaps are still weak, further weakening the Asian crack spread. The physical cargo premium continues to soften to below $3.00. Similarly, the bunker delivered premiums slipped to $8.50 above cargo price Yesterday. Both markets are trading lower this morning.

High premiums for prompt deliveries.

380 cst $636
180 cst $646
MDO $972

Fujairah (delivered indications 8-3)

380cst: $628
180cst: $653
MGO: $990

Rotterdam

Indications for delivered bunkers:

380cst: $599
(1.0%): $653
180cst: $616
(1.0%): $674 (very low avails)
MGO 0.1%S: $962