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Technical indicators: neutral

Oil prices rose this morning after countries agreed to take military action to help anti-government rebels in Libya. The United Nations Security Council voted to establish a no fly-zone over the North African country and take measures to defend civilians against forces loyal to Libyan leader Colonel Gaddafi. Meanwhile, the tension continues in Bahrain, a Shia Muslim-majority state where protests erupted against the Sunni Muslim-dominated government, prompting Saudi Arabian intervention. Opposition leaders have been arrested by the government. Crude prices are declining strongly as the Libyan government declares an end of all fightings. Support lines were breached across the whole complex, and many stop-loss orders were triggered.

Oil prices crude oil price rebounded sharply on Thursday as supply concerns and higher demand expectation lifted the market. The unrest in the oil-rich Middle East continued on Thursday, with clashes in Libya shutting down almost all its crude output of 1.6 million barrels per day. Markets analysts said, since Bahrain lies less than 100 km from the hub of the Saudi oil industry at Dhahran, the unrest there remains the key concern to the world oil supply. Meanwhile, there were positive signals for U.S. economic recovery. The Labor Department said Thursday that applications for unemployment benefits fell last week, and the four-week moving average fell to 386,250, the lowest level since July 2008, reflecting faster payroll gains. And stock markets bounced back after taking a beating on Wednesday. Also, the demand expectation was pushed higher by the coming reconstruction of Japan's quake-hit areas.

OPEC members including Saudi Arabia have increased production partly to compensate for the loss of as much as two-thirds of Libyan supplies, at the same time eroding spare capacity.

ICE Gasoil contract for April delivery settled at 974.25 dollars Thursday night. This was 15.25 dollars above Wednesday's settlement. Volume with some 70,500 deals 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 are consolidating on a high level this morning, oil surged in New York after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi's air force as continuing unrest in the region renewed concerns that the turmoil may spread and disrupt supply. Trade volume is well above average.

Houston (ex-wharf indications 16-3)

380 cst $612
180 cst $633
MDO $938

Very tight avails for 180 cst

New Orleans (ex wharf indications 16-3)

380 cst $614
180 cst $635
MDO $941

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

Crude is surging with WTI +$4.36 Singapore paper is reacting with +$20.25 for 180 cst and +$20.00 for 380 cst for Apr, and for May 180 cst +$19.20 and 380cst +$20.30 with MGO Apr contracts at +$3.78 and for May at +$ 3.83 The cargo market is yet to react with 180cst -$9.61, 380cst -$6.48 and MGO +$1.57.

The Singapore fuel oil markets extended it losses by another $10.00- 6.00/mt during the Platts window yesterday. The volatile crude has market players moving into cautious territory causing the Asian Fuel Oil cracks to lose $3.00/bbl. The bunker delivered premiums were ranging at $8.00- 9.00 above cargo price yesterday. Bunker fuel swaps gained more than $7.00/mt along the curve both in Rotterdam and Singapore with gains slightly more pronounced at the backend. Both markets remain in backwardation with Cal 12 papers in Singapore being assessed at the discount of app. $20.00/mt compared to spot prices. Both markets are traded higher today.

High premiums for prompt deliveries.

380 cst $646
180 cst $660
MDO $1005

Fujairah (delivered indications 18-3)

380cst: $643
180cst: $675
MGO: $981

Rotterdam

Indications for delivered bunkers:

380cst: $610
(1.0%): $661
180cst: $630
(1.0%): $689 (very low avails)
MGO 0.1%S: $992