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Technical indicators: neutral to bullish

After their steep rise this morning, with Brent hitting a 2.5 year high at 124 usd, oil prices are seen consolidating on this high level over noon. With the weekend ahead, analysts expect some profit taking in the afternoon after the opening of NYMEX session. A major aftershock in Japan, and the latest Chinese economic data that will likely prompt for counter inflation measures, fuel worries on slowing demand.

Yesterday, oil prices consolidated in a tight range during the day, as analysts had expected. The brent at the ICE hit its first support line that proved strong. Only in late NYMEX session did prices receive an appreciable amount of support from better-than-expected US economic data and the destruction of Libyan oil installations. Still, gasoil prices in London settled below the previous day's levels.

ICE Gasoil contract for April delivery settled at 1,024.50 dollars Thursday night This was 1.00 dollar below Thursday's settlement. Volume with some 49,900 deals below average.

The Stochastic indicator for the gasoil, brent and WTI crude contract is strongly overbought but is giving no clear signals for the time being. First resistance lines were breached as early as this morning, manifesting the short-term uptrends with a solid support line for all contracts. Technical analysts are therefore rather bullish today, despite the overbought markets allowing for a downward correction within the existing uptrend. The first support for the WTI crude is seen at 110.00 dollars, the first resistance at 111.50 dollars. The Brent's first resistance is seen at 124.00 dollars, its first support is at 122.00 dollars.

U.S.

Nymex Access gaining. Oil futures rose strongly in Asian trading and Globex electronic trading this morning, supported by the dollar's hefty losses and the supply cuts stemming from attacks on Libyan oil fields. The traded volume is significantly above average.

Houston (ex-wharf indications 8-4)

380 cst $670
180 cst $691
MDO $1014

Very tight avails for 180 cst

New Orleans (ex wharf indications 8-4)

380 cst $673
180 cst $694
MDO $1017

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

Crude is surging with WTI +$2.45 Singapore paper is gaining bullish momentum as well with +$5.95 for 180 cst and +$5.95 for 380 cst for Apr, and for May 180 cst +$6.25 and 380cst +$6.25 with MGO Apr contracts at +$2.08 and for May at +$ 2.10 The cargo market is ignoring the bullisness and is turning with 180cst -$0.61, 380cst -$1.46 and MGO +$0.30

The fuel oil crack spreads weakened for a third session on Thursday, with its May discount to Dubai crude widening towards. Prices are high enough that those with long positions can still realize a profit. With today's thin volumes, the impact of any price movement would have been exaggerated. The Singapore bunker differential, the price spread between ex-wharf marine fuel prices and fuel oil cargo values, rose $1.20 to $7.00, with bunker fuel prices flat at $683.00/mt. Singapore onshore fuel oil stocks rose 2.1 million barrels to a 14-week high of 20.67 million barrels, reflecting heavy arrivals in the past week, data from International Enterprise (IE) showed on Thursday. Fuel oil's May East-West spreads edged above $43.00 a tonne, up 13 cents from the previous session, keeping the West-to-East arbitrage window remains notionally open with a buffer of $12.50- 13.00/mt. This morning both markets are trading significantly higher.

High premiums for prompt deliveries.
v 380 cst $688
180 cst $700
MDO $1055

Fujairah (delivered indications 8-4)

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

Rotterdam

Yesterday in the MOC lsfo was traded between 710-716 usd, hsfo between 644-647 usd.

Indications for delivered bunkers:

380cst: $658
(1.0%): $731
180cst: $681
(1.0%): $752 (very low avails)
MGO 0.1%S: $1051