---

Technical indicators: neutral

Oil prices are seen consolidating on their high level today, staying within their trading range. Support and resistance lines should not be breached. US employment figures this afternoon are important as they are supposed to give more hints on the state of the US economy. Along with the rise in US fuel and distillate demand, positive figures should support the oil complex.

Oil prices settled slightly higher yesterday, having climbed to intraday highs after the release of DOE inventories. Yet as experts had expected, the rise was limited and prices presented themselves rather volatile in late NYMEX session and after-hour trading.

* Libya accused Britain of damaging an oil pipeline in an air strike, hours after rebels said government attacks had halted production of oil they hope to sell to finance their uprising. Top oil exporter Saudi Arabia has unexpectedly called on oilfield service firms to expand the kingdom's oil rig count by nearly 30 percent, according to Simmons & Co, to ensure spare production capacity remains ample as supply uncertainty grows.

* Seven small oil terminals and most of the shipping berths at Japan's northeastern ports remain closed more than two weeks after a devastating earthquake, government and industry officials said.

ICE Gasoil contract for May delivery settled at 1.014,75 dollars Wednesday night. This was 6,25 dollars above Tuesday's settlement. Volume with some 88.500 deals significantly above average.

U.S.

Nymex Access gaining. Oil futures are trading on Wednesday's high levels in East Asia and Globex electronic trading this morning, moving in a narrow lateral range. The high draw in US product stocks is still lending support. The traded volume is on average.

US economic data 12/4

Import prices rose 2.7% in March after +1.4% in the previous month. Economists expected a 2.2% increase

Export prices rose 1.5% in the same period after a 1.2% increase in February

US trade deficit fell to 45.76 billion dollars in February, in line with economists's expectations and down from 46.30 billion dollars in January. US business inventories rose 0.5% in February after a 0.9% increase in the previous month and a survey of +0.8%.

Houston (ex-wharf indications 13-4)

380 cst $652
180 cst $671
MDO $1045

Very tight avails for 180 cst

New Orleans (ex wharf indications 13-4)

380 cst $655
180 cst $674
MDO $1048

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

Crude is bouncing shaarply with WTI +$1.40 Singapore paper is mirroring crude with +$6.75 for 180 cst and +$7.55 for 380 cst for Apr, and for May 180 cst +$7.05 and 380cst +$6.95 with MGO Apr contracts at +$1.04 and for May at +$1.07 The cargo market is yet to react to the bounce still losing with 180cst -$10.84, 380cst -$9.65 and MGO -$3.55.

The Singapore fuel oil markets were down $9.5 to $11.0 during the Platts window yesterday tracking the volatile crude movement. The Asian fuel oil crack similarly was as volatile firming yesterday on weaker crude. The bunker delivered premiums inched higher more than $7.0 above cargo prices yesterday.

High premiums for prompt deliveries.

380 cst $694
180 cst $680
MDO $1040

Fujairah (delivered indications 14-4)

380cst: $680
180cst: $705
MGO: $1040

Rotterdam

Yesterday in the MOC lsfo was traded between usd 713 and 717, hsfo between usd 638.25 and 644.

Indications for delivered bunkers:

380cst: $647
(1.0%): $720
180cst: $672
(1.0%): $745 (very low avails)
MGO 0.1%S: $1023