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Technical indicators: neutral to bullish

Oil prices kept rising in electronic trading and several resistance lines were breached but the resistance levels seem to be strong. Worries on the continuing conflict in Libya underpin the markets.

Oil markets soared on Yesterday, the WTI crude settled near 107 dollars a barrel and the brent rose above 117.00 dollars, as Muammar Gaddafi's troops forced the rebels to pull back from the eastern oil towns Ras Lanuf and Brega. Libya's oil exports of 1.6 billion barrels per day are still shut down. The rebels had issued a timetable to restore the exports after they seized the control of the oil fields and ports. But the hope was dashed again.

ICE Gasoil contract for April delivery settled at at 993.00 dollars Thursday night. This was 15.00 dollars above Wednesday's settlement. Volume with some 61,100 deals slightly above average.

Oil prices breached the short-term downtrend across the complex yesterday after the WTI crude's Stochastic indicator had turned bullish. Both RSI and Stochastic indicators are bullish for all contracts. The gasoil in London is expected to hit the psychologically important 1000 dollar resistance still today. The first support for the WTI crude is seen at 104.75 dollars, the first resistance at 108.00 dollars. The Brent's first resistance is seen at 118.00 dollars, its first support is at 116.00 dollars. Technical analysts see the bullish tendency continue should the situation in Libya not change and forecast that WTI crude and the brent will hit new year highs by next week.

U.S.

Nymex Access gaining. Oil prices rose in Asian trading and Globex electronic trade early this morning, extending Thursday's gains. The WTI crude rose above 107.00 dollars, and the brent is steady above 117.00 dollars, exceeding Thursday's highs, while oil products hit yesterday's highs but could not break through. Currently all futures are retreating as market participants are taking profit. The traded volume is well above average.

Houston (ex-wharf indications 31-3)

380 cst $642
180 cst $663
MDO $1002

Very tight avails for 180 cst

New Orleans (ex wharf indications 31-3)

380 cst $644
180 cst $665
MDO $1005

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

Crude is gaining bullish momentum with WTI +$2.34 Singapore paper is surging as well with +$9.05 for 180 cst and +$10.25 for 380 cst for Apr, and for May 180 cst +$9.50 and 380cst +$9.00 with MGO Apr contracts at +$2.00 and for May at +$ 1.85 The cargo market starts to track crude and paper with 180cst +$5.38, 380cst +$5.80 and MGO +$0.54.

The Singapore fuel oil markets were up more than $5.00 tracking crude movement during the Platts window. There was a build of 0.13 mbbl to 18.58 mbbl of heavy residual inventory in Singapore. The bunker delivered premiums were slightly more than $7.50 above cargo price yesterday as some sellers were clearing tankage space for the incoming cargoes. Bunker fuel swaps gained $6.00-8.00/mt along the curve both for Rotterdam 3.5% Barges FOB and Singapore 180cst Cargo FOB with gains more pronounced at the front of the curve. Both markets are trading higher this morning.

High premiums for prompt deliveries.

380 cst $662
180 cst $677
MDO $1010

Fujairah (delivered indications 1-4)

380cst: $656
180cst: $686
MGO: $995

Rotterdam

Indications for delivered bunkers:

380cst: $626
(1.0%): $685
180cst: $648
(1.0%): $710 (very low avails)
MGO 0.1%S: $999