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

Oil prices are very volatile during midday, the major earthquake in Northeastern Japan hit stocks all round the world Friday but the yen proved resilient to one of the bigger tremors the country has suffered. The quake, which struck towards the end of the Asian trading session, prompted a renewed bout of selling in stock markets and a sell-off in the yen. However, the Japanese currency recovered somewhat, thanks to its status as a safe haven for international traders. Traders are waiting for news from the Middle-East and USA.

Yesterday oil prices hovered below 103 US dollars a barrel in Asia as traders worried protests in Saudi Arabia could escalate and potentially hamper production in the world’s largest crude exporter. Saudi police attacked a protest by minority Shiites in the eastern city of Qatif. Shiites, who account for about 10 percent of the kingdom’s 23 million population, have protested for two days demanding the release of political prisoners.

Pro-democracy activists have called for protests on Friday in the capital, Riyadh, to demand reforms to the monarchy. Public demonstrations are banned in Saudi Arabia.

The OPEC stated this morning that its members have raised their oil production to the highest level since late 2008, in a report that sought to ease concerns about Libya's supply disruption. The group has not formally lifted its production ceiling since unrest started in its member state Libya in mid-February, driving up oil prices. But the Vienna-based cartel reiterated that it has spare capacity of nearly 6 million barrels per day, and that oil stocks are currently at high levels, especially in industrialized countries.

ICE Gasoil contract for March delivery settled at 953.25 dollars Thursday night. This was -15.00 dollars above Wednesday's settlement. Volume with some 135,300 deals well above average.

The Stochastic for Brent starts giving a buying signal to the markets today. The Stochastic of WTI is still slightly bearish and restrains NYMEX C.Oil in his upward movement. Nevertheless, the trend canals remain intact. The first support for the WTI crude is seen at 103.90 dollars, the first resistance at 105.50 dollars. The Brent's first resistance is seen at 117.00 dollars, the first support is at 112.15 dollars.

U.S.

Nymex Access losing. Oil prices are declining slightly this morning, due to profit taking and stronger dollar after yesterday's losses. The traded volume is above average.

Houston (ex-wharf indications 10-3)

380 cst $620
180 cst $640
MDO $997

Very tight avails for 180 cst

New Orleans (ex wharf indications 10-3)

380 cst $622
180 cst $643
MDO $999

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

Crude is gaining bearish momentum, losing with WTI -$3.24 Singapore paper is starting to reflect the reversed sentiment with -$4.30 for 180 cst and -$3.25 for 380 cst for March, and for Apr 180 cst -$4.25 and 380cst -$3.25 with MGO March contracts at -$1.36 and for Apr at +$1.27

The cargo market is reacting to this week's gains with 180cst +$17.05, 380cst +$16.22 and MGO +$2.37

The Asian fuel oil strengthened for a third session on Thursday, as players continued to pick up prompt fixed-price contracts at stronger levels despite higher crude benchmarks, lifting its cracks to a discount narrower than $11.00/bbl. The front-end of its forward curve structure, from March/April till September/October, also strengthened, with April/May and May/June seeing the strongest buying interests and widening by nearly $1.00/mt each in backwardation. Delivered bunkers traded at Mops+ $4.00. The Singapore bunker differential, the price spread between ex-wharf marine fuel prices and fuel oil cargo values, rose 88 cents to $8.25, with bunker fuel prices up $17.00 to $645.00/mt. This morning both markets are trading higher.

High premiums for prompt deliveries.

380 cst $636
180 cst $649
MDO $970

Fujairah (delivered indications 11-3)

380cst: $634
180cst: $665
MGO: $990

Rotterdam

Indications for delivered bunkers:

380cst: $606
(1.0%): $665
180cst: $623
(1.0%): $686 (very low avails)
MGO 0.1%S: $963