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Technical indicators: bullish

Oil prices rise, both WTI and Brent on continuing fighting in Libya continues to threaten the country's oil infrastructure. Also the reluctance of OPEC to call for an emergency meeting underpins the markets.

Yesterday oil prices slipped, with Brent falling nearly 2 percent, after Kuwait's oil minister said OPEC was considering a production boost as war-torn Libya's output remained disrupted and the region's unrest fueled concerns about more supplies being cut off. Support lines were breached across the whole complex and many selling orders were triggered.

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 and RSI for Brent remain bearish today. The Stochastic of WTI shows selling signal, while the RSI remains unclear. If further bearish fundamentals appear, prices will fall further. But analysts are seen prices to consolidate after Yesterday's losses. The first support for the WTI crude is seen at 104.20 dollars, the first resistance at 105.00 dollars. The Brent's first resistance is seen at 113.00 dollars, the first support is at 112.00 dollars.

U.S.

Nymex Access losing. Oil prices are continuing their fall this morning. Oil prices fell to near 104 dollars a barrel after Kuwait's oil minister said that OPEC members are in informal talks about raising oil output as the conflict in Libya , whiich sits atop Africa's largest proven reserves of conventional crude oil continues. In currencies, the dollar rose against the yen and the euro. The traded volume is at average.

APIs: crude oil +3.820; distillates -1.473; gasoline -3.743 million barrels vs previous week. Refinery utilization +1.5%

DOEs: due out tonight

Forecasts: crude oil +0.400; distillates -1.800; gasoline -1.500 million barrels vs previous week. Refinery utilization +0.1%

Houston (ex-wharf indications 8-3)

380 cst $630

180 cst $650

MDO $997

Very tight avails for 180 cst

New Orleans (ex wharf indications 8-3)

380 cst $632
180 cst $653
MDO $999

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

Crude is turning upwards again, gaining with WTI +$0.28 Singapore paper is slowing, but not yet turning with -$2.05 for 180 cst and -$1.70 for 380 cst for March, and for Apr 180 cst -$2.05 and 380cst -$1.80 with MGO March contracts at -$2.05 and for Apr at -$1.80 The cargo market is turning bearish with 180cst -$4.40, 380cst -$6.06 and MGO -$2.04

The Singapore bunker differential, the spread between ex-wharf marine fuel prices and fuel oil cargo values, fell $2.18 to $6.70, with bunker fuel prices down $9.00 at $630.00/mt. The West-to-East arbitrage window remained notionally closed, with a steady buffer of $7.00-$8.00, despite a wider April East-West spread at $41.25/mt, up $1.00, versus weaker 380-cst cash differentials at $3.13. Bunker fuel swap prices following general trend in the market, lost app. $10.00/mt along the curve both in Rotterdam and Singapore yesterday. Both markets continue to stay in backwardation which is more pronounced in Singapore where Cal 12 papers are traded at app. $20.00/mt discount compared to spot prices. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $631
180 cst $643
MDO $962

Fujairah (delivered indications 9-3)

380cst: $627
180cst: $655
MGO: $989

Rotterdam

Indications for delivered bunkers:

380cst: $597
(1.0%): $648
180cst: $615
(1.0%): $674 (very low avails)
MGO 0.1%S: $961