---

Technical indicators: bearish immediate term / neutral to bullish medium term

Saudi Arabian Oil Minister Ali Naimi stated yesterday the global oil market is oversupplied, dampening hopes OPEC will soon boost its output to help bring down prices, according to the official Saudi Press Agency. Naimi said Saudi Arabia, the world's largest oil exporter, cut daily output to 8.3 million barrels in March from 9.1 million barrels in February because of what it saw as excess global supply. This morning though, oil futures eased in East Asia and Globex electronic trading this morning on profit taking after Friday's gains and weighed down by a stronger dollar. The traded volume is below average.

After oil futures eventually breached their first resistance lines during NYMEX session last Friday, technical buying orders pushed prices to new highs, the WTI crude surpassing the psychologically important 110.00 dollar mark and the brent hitting 124.00 dollars. Positive US economic data and the elections in Nigeria helped to support the oil complex.

ICE Gasoil contract for May delivery settled at 1,024.50 dollars Friday night. This was 12.00 dollars above Thursday's settlement. Volume with some 52,800 deals about on average.

After oil prices breached several resistance lines on Friday, surging to new highs, technical analysts reckon with a consoldation today. In the morning, profit taking could give some bearish momentum. The Stochastic indicator gives bullish signals while the RSI is still in neutral territory. The first support for the WTI crude is seen at 107.20 dollars, the first resistance at 110.00 dollars. The Brent's first resistance is seen at 123.75 dollars, its first support is at 122.00 dollars.

U.S.

Nymex Access losing. Oil futures eased in East Asia and Globex electronic trading this morning, as traders took some profit after Friday's gains and weighed down by a stronger dollar and comments of Saudi Arabia's oil minister who said the market was still oversupplied. The traded volume is below average.

Houston (ex-wharf indications 15-4)

380 cst $654
180 cst $673
MDO $1043

Very tight avails for 180 cst

New Orleans (ex wharf indications 15-4)

380 cst $656
180 cst $675
MDO $1046

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

Crude is not moving much with WTI +$0.24 Singapore paper is coming down again with -$3.50 for 180 cst and -$4.45 for 380 cst for Apr, and for May 180 cst -$3.50 and 380cst -$4.70 with MGO Apr contracts at -$0.55 and for May at -$0.55 The cargo market is reacting now to yesterday's bounce with 180cst +$6.63, 380cst + $7.17 and MGO +$1.05.

The Singapore fuel oil markets came off by more than $3.5/mt last Friday tracking the weaker crude during the Platts window. The Asian fuel oil crack rebounded on tighter supply in Singapore. The bunker delivered premiums were around $6.0/mt above cargo prices. Bunker fuel swaps were strong as well gaining few dollars along the curve. Forward curve maintains a strongly backwardated structure with 2012 prices trading well below spot and front month figures. Market is trading down this morning pricing in an overnight decline in crude futures.

High premiums for prompt deliveries.

380 cst $681
180 cst $665
MDO $1022

Fujairah (delivered indications 15-4)

380cst: $679
180cst: $705
MGO: $1040

Rotterdam

Friday, in the MOC lsfo was traded at usd 716, hsfo between usd 643.50 and usd 646.

Indications for delivered bunkers:

380cst: $646
(1.0%): $723
180cst: $666
(1.0%): $749 (very low avails)
MGO 0.1%S: $1025