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Technical indicators: neutral to bearish

Crude oil prices futures inched lower as Libyan rebel gains of key towns raised hopes that some exports could be resumed. However, continued unrest in Yemen, Bahrain and Syria kept prices from falling too far, as worries prevailed that violence could spread to major oil exporter Saudi Arabia.

Friday, crude prices consolidated on their high levels, supported by the riots in the Arab World and the nuclear crisis in Japan on the one side, and weighed down by the stronger dollar on the other. Western-led military intervention in Libya's civil war prompted speculators to raise their bets on higher prices by 6 percent last week, before rebels took back a series of towns including oil terminals over the weekend.

OPEC: Quatar's Energy Minister Mohammed Saleh Al-Sada stated Yesterday that there is no need to hold a meeting before June as the market is in a comfortable position.

ICE Gasoil contract for April delivery settled at 979.75 dollars Friday night. This was 2.00 dollars below Thursday's settlement. Volume with some 40,000 deals below average.

The Stochastic indicators for ICE gasoil, the brent and WTI crude are seen bearish, the RSI indicates an overbought market situation. Technical analysts therefore see potential for some profit taking and a short-term downward correction, provided that the so-far strong WTI crude support at 104.50 dollars and the brent support at 114.50 dollars are breached. The first support for the WTI crude is seen at 104.50 dollars, the first resistance at 106.00 dollars. The Brent's first resistance is seen at 116.00 dollars, its first support is at 115.30 dollars.

U.S.

Nymex Access easing. Oil prices are easing for a third day in Asian trading and Globex electronic trading this morning, as concern that Japan’s ongoing nuclear crisis is delaying rebuilding efforts and European nations’ debt may cut demand, overshadowed turmoil in Libya and the Middle East. The traded volume is on average.

Houston (ex-wharf indications 25-3)

380 cst $638
180 cst $657
MDO $998

Very tight avails for 180 cst

New Orleans (ex wharf indications 25-3)

380 cst $641
180 cst $660
MDO $1002

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

Crude continues to lose with WTI -$0.61 Singapore paper is following crude with -$4.00 for 180 cst and -$3.55 for 380 cst for Apr, and for May 180 cst -$3.50 and 380cst -$3.55 with MGO Apr contracts at -$0.84 and for May at -$ 0.82 The cargo market is slowing with 180cst +$2.57, 380cst +$3.77 and MGO -$0.72.

The Singapore fuel oil markets were up only more than $1.50/mt tracking crude movements during the Platts window. The Singapore heavy residual inventory reported almost flat draw to 18.45 mbbl. There were not big changes to the bunker delivered premiums which hovered at around $10.00 above cargo price yesterday. Bunker fuel swaps gained a few cents in the front and lost app.$1.00/mt at the backend of the forward curve both in Rotterdam and Singapore. Both markets remain backwardated with Cal12 papers in Singapore trading at a discount close to $30.00/mt versus spot prices (app. $25/mt discount in Rotterdam). Both markets are trading higher this morning.

High premiums for prompt deliveries.

380 cst $646
180 cst $660
MDO $990

Fujairah (delivered indications 28-3)

380cst: $642
180cst: $667
MGO: $985

Rotterdam

Indications for delivered bunkers:

380cst: $608
(1.0%): $674
180cst: $635
(1.0%): $699 (very low avails)
MGO 0.1%S: $981