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Technical indicators: neutral to bullish

Oil prices rise at midday, resistance lines were breached in Londen and New York on technical buying in the wake of recovering European equity markets.

Yesterday oil futures traded in a tight range in electronic morning trading and rose strongly short before midday, supported by the ailing dollar. After a volatile session in New York the oil prices then settled slightly higher.

OPEC members with spare capacity are ready to pump above agreed limits if there is a need, but it seems unlikely that a formally change of output targets will be announced at the next meeting in June. In February top producer Saudi Arabia raised output above 9 million barrels per day, around a million bpd more than its OPEC output limit, in response to supply disruption in OPEC member Libya that drove oil prices to their highest since the record rally of 2008. But in March, Saudi Arabia scaled back to around 8.3 million bpd.

ICE Gasoil contract for May delivery settled at 1,017.75 dollars Tuesday night. This was 8.50 dollars above Monday's settlement. Volume with some 34,900 deals below average.

Medium- and long-term uptrend channels are still intact on all charts. The Stochastic indicator on the gasoil, WTI and brent chart is still bearish this morning while the RSI on the WTI crude chart has not yet given any selling signals. Therefore, technical analysts see prices consolidating above the 111.00 dollar support of the WTI crude. As long as prices trade above this level, no technical selling orders will be triggered, so analysts. The first support for the WTI crude is seen at 111.60 dollars, the first resistance at 112.65 dollars. The Brent's first resistance is seen at 124.40 dollars, its first support is at 123.50 dollars.

U.S.

Nymex Access gaining. Oil prices are trading in a narrow lateral range in East Asia and Globex electronic trading this morning, supported by the weak dollar as investors wait for details of the FED's monetary policy stance in a thin trade.

APIs: crude oil +4.9; distillates +1.5; gasoline -2.1 million barrels vs previous week. Refinery utilization -0.7%

DOEs: Due out tonight

Forecasts: crude oil +1.1; distillates +0.6; gasoline -1.0 million barrels vs previous week. Refinery utilization +1.0%

Houston (ex-wharf indications 26-4)

380 cst $661
180 cst $696
MDO $1017

Very tight avails for 180 cst

New Orleans (ex wharf indications 26-4)

380 cst $664
180 cst $699
MDO $1019

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

Crude is slowing it its losses, but not turning yet with WTI -$0.06 Singapore paper is mixed, looking for direction with -$5.30 for 180 cst and -$3.00 for 380 cst for May, and for Jun 180 cst -$0.90 and 380cst +$0.20 with MGO May contracts at -$1.00 and for Jun at -$ 0.10 The cargo market is mixed as well with 180cst +$2.79, 380cst +$0.70 and MGO -$0.69.

The Singapore fuel oil markets were up marginally ranging $0.70 to $3.00 yesterday during the Platts window. The Singapore heavy residual inventory reported a build of +1.66 mbbl to 23.04 mbbl which is the highest in six months. The incoming for the last one month period was estimated at 4.4 to 4.5 million mt. The bunker delivered premiums were around $7.00 above cargo prices yesterday. This morning both markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $678
180 cst $694
MDO $1035

Fujairah (delivered indications 27-4)

380cst: $672
180cst: $709
MGO: $1046

Rotterdam

Indications for delivered bunkers:

380cst: $645
(1.0%): $707
180cst: $672
(1.0%): $732 (very low avails)
MGO 0.1%S: $1028