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Technical indicators: bullish

Oil prices prices rising slightly during midday, crude oil testing its first resistance lines, rebounding from a three-week low near the start of the session as clashes in the Middle East continued and Bahrain declared a state of emergency in an attempt to get grip on the uprising.

Oil prices crude oil prices were lower on concern that economic conditions in Japan may deteriorate following last Friday's earthquake and tsunami. Prices briefly soared to a two-and-a-half year high when political unrest escalated in the Middle East and North Africa. But since the massive temblor, they have faced downward pressure on speculation about a worsening economic outlook for Japan. Important support line were breached and many selling orders were triggered.

OPEC may meet to assess the impact of the nuclear crisis in Japan and the ongoing unrest in the Middle East and North Africa on oil supply, Nigeria's foreign minister said this morning.

ICE Gasoil contract for March delivery settled at 952.00 dollars Tuesday night. This was 11.00 dollars below Monday's settlement. Volume with some 120,100 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 gaining. Oil prices prices rising slightly during midday, crude oil testing its first resistance line, rebounding from a three-week low near the start of the session as clashes in the Middle East continued and the Japanese nuclear crisis worsened. Bahraini security forces cracked down on protesters on Wednesday, firing teargas they cleared demonstrators from a central roundabout that had become the symbol of an uprising by the island's Shi'ite Muslim majority.

APIs: crude oil +0.091; distillates +0.531; gasoline -0.458 million barrels vs previous week. Refinery utilization +2.4%

DOEs: due out tonight

Forecasts: crude oil +1.000; distillates -1.500; gasoline -1.700 million barrels vs previous week. Refinery utilization -0.2%

Houston (ex-wharf indications 15-3)

380 cst $612
180 cst $633
MDO $938

Very tight avails for 180 cst

New Orleans (ex wharf indications 15-3)

380 cst $614
180 cst $635
MDO $941

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

Crude is losing firm with WTI -$1.47 Singapore paper is reflecting the bearish sentiment with -$9.75 for 180 cst and -$9.00 for 380 cst for Apr, and for May 180 cst -$9.05 and 380cst -$7.95 with MGO Apr contracts at -$1.67 and for May at -$ 1.62 The cargo market is mixed, looking for direction with 180cst +$2.68, 380cst -$0.28 and MGO +$0.57.

The Singapore fuel oil markets were trading in mixed closing ranging -$0.50 to +$2.50 during the Platts window yesterday tracking the crude movement. The Asian Fuel Oil crack continues to gain strength as Japan may be soaking up barrels in light of their energy requirements. The bunker delivered premiums ranged from $6.00 to $9.50 above cargo price yesterday. Bunker fuel swaps lost more than $9.00/mt in the front of the curve and a bit less in the backend both in Rotterdam and Singapore. Both markets remain in backwardation, which is more pronounced in Singapore where Cal12 papers are assessed at a discount of more than $25.00/mt compared to spot prices (app. $10/mt discount in Rotterdam papers). This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $630
180 cst $642
MDO $963

Fujairah (delivered indications 16-3)

380cst: $635
180cst: $657
MGO: $990

Rotterdam

Indications for delivered bunkers:

380cst: $601
(1.0%): $684
180cst: $621
(1.0%): $708 (very low avails)
MGO 0.1%S: $952