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Technical indicators: neutral to bullish

Oil prices rose today, climbing to a new 30-month high after bullish US unemployment data, while Libya had accused the UK of bombing an important oil pipeline, which could endanger Libyan oil exports, but are coming back from day's highs after WTI crude resistance at 109.15 dollars was hit but proved strong.

Oil prices rose and the dollar fell Wednesday ahead of today's ECB decision on interest rates and on trader's expectations that DOE oil inventories would show similar draws as did the API the day before. When ICE gasoil breached first resistance line early in the day, technically motivated buying pushed prices higher. Only after the release of DOE data did the futures come back from their intraday highs but still settled above previous day's levels.

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 1,025.50 dollars Wednesday night. This was 4.00 dollars above Tuesday's settlement. Volume with some 35.300 deals well below average.

Both Stochastic and RSI indicators are in overbought territory for all contracts, making a continuation of the downward correction possible. Yet analysts see oil prices moving in between their trading range today. The first support for the WTI crude is seen at 107.85 dollars, the first resistance at 109.15 dollars. The Brent's first resistance is seen at 123.40 dollars, its first support is at 121.35 dollars.

U.S.

Nymex Access gaining. Oil futures eased slightly in Asian trading and Globex electronic trading this morning, as the dollar rises versus the euro and market participants keep taking profit. 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: crude oil +1.952; distillates +0.195; gasoline -0.357 million barrels vs previous week. Refinery utilization -0.016%.

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

Houston (ex-wharf indications 7-4)

380 cst $670
180 cst $691
MDO $1014

Very tight avails for 180 cst

New Orleans (ex wharf indications 7-4)

380 cst $673
180 cst $694
MDO $1017

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

Crude is bullish still with WTI +$0.56 Singapore paper is mixed with -$1.45 for 180 cst and -$0.90 for 380 cst for Apr, and for May 180 cst -$0.75 and 380cst -$0.95 with MGO Apr contracts at +$0.45 and for May at +$ 0.48 The cargo market tracking crude and paper with 180cst +$8.83, 380cst +$6.59 and MGO +$1.41.

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 $1040

Fujairah (delivered indications 7-4)

380cst: $680
180cst: $704
MGO: $1027

Rotterdam

Indications for delivered bunkers:

380cst: $649
(1.0%): $721
180cst: $671
(1.0%): $740 (very low avails)
MGO 0.1%S: $1029