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Technical indicators: neutral to bullish

Oil prices are rising during electronic trading due to stronger Euro. First resistance lines were breached across the whole complex, and buying orders were triggered.

Oil prices rose to fresh two and a half year highs yesterday, with Brent crude topping 122 dollars a barrel as unrest in oil exporting countries in the Middle East and Africa outweighed China's fourth interest rate hike since October. The prospect of a stalemate prolonging the loss of 1.3 million bpd of exports from Libya loomed amid unsuccessful efforts to end the war and clashes over the oil town of Brega intensified.

OPEC is not due to meet until June and current OPEC president Iran has said that it sees no need for an emergency meeting to discuss the recent spike in oil prices to their highest level since September 2008. Brent Blend futures Monday traded at $119.30/barrel after a strong open at the start of the trading week.

ICE Gasoil contract for April delivery settled at 1.021.50 dollars Tuesday night. This was 12.75 dollars above Monday's settlement. Volume with some 51,500 deals slightly below average.

Oil prices breached more resistance lines Monday, establishing the solid uptrend. Both RSI and Stochastic indicators give bullish signals for all contracts but the WTI crude, yet markets are meanwhile heavily overbought, paving the way for some profit taking. The WTI's indicators already signal a downward correction. The brent surpassed 120.00 dollar resistance yesterday, widening the spread between the two crudes. The first support for the WTI crude is seen at 107.50 dollars, the first resistance at 108.80 dollars. The Brent's first resistance is seen at 121.30 dollars, its first support is at 120.00 dollars.

U.S.

Nymex Access gaining. Oil futures are rising slightly during morning trading due to weaker dollar and remain within sight of record highs and multi-year peaks as commodity prices fuel inflationary pressure that governments worldwide are struggling to contain. The traded volume is below average.

APIs: crude oil -2.800; distillates -1.000; gasoline +0.600 million barrels vs previous week. Refinery utilization +0.7%.

DOEs: Due out tonight

Forecasts: crude oil +1.600; distillates -0.400; gasoline -1.800 million barrels vs previous week. Refinery utilization +0.6%

Houston (ex-wharf indications 5-4)

380 cst $661
180 cst $680
MDO $1013

Very tight avails for 180 cst

New Orleans (ex wharf indications 5-4)

380 cst $663
180 cst $682
MDO $1016

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

Crude is back on its bullish track with WTI +$0.42 Singapore paper is reflecting it with +$8.95 for 180 cst and +$6.55 for 380 cst for Apr, and for May 180 cst +$8.95 and 380cst +$6.60 with MGO Apr contracts at +$1.27 and for May at +$ 1.27 The cargo market slowing with 180cst +$2.03, 380cst +$1.62 and MGO +$0.26.

The fuel oil markets ridding on the strength of the crude movements, were up more than $12.50 during the Platts window yesterday. There were also strong buying interests in fuel oil swaps keeping the cracks firm in view of strengthening crude values. The bunker delivered premiums were hovering at around $7.50 above cargo price yesterday. Bunker fuel swaps were up as well both for Rotterdam 3.5% Barges FOB and Singapore 180cst Cargo FOB papers following the general trend. Backend of the curve was a little less up compared to the front. Both markets are trading slightly higher this morning.

High premiums for prompt deliveries.

380 cst $684
180 cst $695
MDO $1038

Fujairah (delivered indications 6-4)

380cst: $680
180cst: $703
MGO: $1025

Rotterdam

Indications for delivered bunkers:

380cst: $657
(1.0%): $723
180cst: $673
(1.0%): $742 (very low avails)
MGO 0.1%S: $1025