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Technical indicators: neutral

Crude Oil fell slightly in the afternoon, weighed down by swelling crude inventories in the United States while President Obama is expected to set a long-term goal to cut oil imports. The drop in prices, however, was capped by the continuing unrest in North Africa and the Middle East. The trading volume was relatively small, with the end of the first quarter near.

As analysts had expected, oil prices consolidated in the morning, easing below first support lines at midday and unexpectedly jumped after the opening of NYMEX session in the wake of Wall Street that rose despite news that U.S. consumer confidence fell in March in the face of higher fuel prices and that U.S. home prices fell in January.

OPEC: Quatar's Energy Minister Mohammed Saleh Al-Sada stated last Sunday 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.

Oil prices are seen moving within their narrow short-term downside trend also today. Tuesday, prices stopped short at the lower limit of the downtrend. Both RSI and Stochastic indicators are bearish this morning, and since prices have a lot of room until the first support lines, a technical downward correction within the existing trendchannel is likely today. Yet technical analysts see only little potential for a lasting change in the medium-term uptrend. The first support for the WTI crude is seen at 102.70 dollars, the first resistance at 105.00 dollars. The Brent's first resistance is seen at 115.35 dollars, its first support is at 113.50 dollars.

U.S.

Nymex Access gaining. Oil prices are rising in technical, thin trading this morning and lifted by stronger equities and lowered expectations about a quick return of Libya's oil exporting capabilities. The traded volume is below average.

Houston (ex-wharf indications 29-3)

380 cst $627
180 cst $648
MDO $987

Very tight avails for 180 cst

New Orleans (ex wharf indications 29-3)

380 cst $630
180 cst $651
MDO $991

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

Crude is turning bullish again, gaining with WTI +$1.29 Singapore paper is mirroring it with +$4.20 for 180 cst and +$5.25 for 380 cst for Apr, and for May 180 cst +$5.00 and 380cst +$5.30 with MGO Apr contracts at +$1.06 and for May at +$ 1.05 The cargo market bearish still with 180cst -$1.29, 380cst -$0.06 and MGO -$0.73.

The Singapore fuel oil markets came off only marginally from flat to -$1.00/mt despite the weaker crude during the Platts window. The Asian crack spread remains firm which supported the fuel oil market. Market is also expecting a tighter month forward as less incoming cargoes are expected. The bunker delivered premiums were slightly over $9.50 above cargo price yesterday. Bunker fuel swaps were up app. $2.50/mt along the curve both in Rotterdam and Singapore with gains slightly more pronounced at the backend of the curve. Both markets remain backwardated where Singapore 180cst Cal12 papers are traded at a discount over $25.00/mt compared to spot prices. This morning both markets are traded lower.

Fujairah (delivered indications 30-3)

380cst: $645
180cst: $673
MGO: $988

Rotterdam

Indications for delivered bunkers:

380cst: $612
(1.0%): $673
180cst: $637
(1.0%): $698 (very low avails)
MGO 0.1%S: $984

High premiums for prompt deliveries. 380 cst $648 180 cst $662 MDO $992