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Technical indicators: neutral to bullish

Oil prices edge higher in morning trading withWTI crude breaching first resistance line, in a technical reaction to Friday's losses and on a slightly weaker dollar.

Friday prices soared above resistance lines Friday when a strong support at the WTI chart around 94.50 dollars proved strong and traders engaged in technical buying orders. Later during the session, oil prices erased part of the earlier gains, settling lower in the end, when the strongly rising dollar and a higher US unemployment rate weighed on prices.

OPEC: Qatar's Energy Minister told reporters on the sidelines of an industry meeting that the upcoming OPEC meeting could not be expected to make any major decision on output quota and ruled out any "dramatic" action to control prices, insisting that production and supplies were at healthy levels and there was no shortage of supply. Many countries, especially from OPEC, have offset the shortfall caused by the unrest in Libya and higher demand from Japan could be dealt with.

ICE Gasoil contract for May delivery settled at 928.50 dollars Friday night. This was 9.75 dollars below Thursday's settlement. Volume with some 59,000 deals above average.

The Stochastic indicator at the brent, the WTI and the gasoil chart started to become bullish and is well in oversold territory, making an upward correction most likely. The RSI also signals an oversold market. Technical analysts reckon that markets will stay volatile. Last week's hefty losses make a determination of trends and tendencies impossible today. The first support for the WTI crude is seen at 97.15 dollars, the first resistance at 100.00 dollars. The Brent's first resistance is seen at 114.25 dollars, its first support is at 105.15 dollars.

U.S.

Nymex Access losing. Oil futures traded slightly higher but in a narrow range in East Asia and Globex electronic trading this morning, the WTI crude rebounding from the biggest weekly decline since 2008 on signs that last week's slump was exaggerated and as the dollar eased a bit versus the euro. The traded volume is far above average.

Houston (ex-wharf indications 6-5)

380 cst $627
180 cst $663
MDO $1004

Very tight avails for 180 cst

New Orleans (ex wharf indications 6-5)

380 cst $629
180 cst $666
MDO $1007

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

Crude is bouncing up somewhat, retrieving only some of last week's losses with WTI +$3.63 Singapore paper is reflecting the bounce with +$26.50 for 180 cst and +$26.75 for 380 cst for May, and for Jun 180 cst +$26.30 and 380cst +$25.95 with MGO May contracts at +$4.20 and for Jun at -$4.21 The cargo market is now fully reacting to last week's drop with 180cst -$66.19 380cst -$65.33 and MGO -$14.52.

The Singapore fuel oil markets plunged more than $65.00 last Friday during the Platts window( in the morning European time) following the huge drop in crude value on Thursday. The Asian Fuel Oil cracks strengthen considerably as fuel oil still lacks the volatility in crude. The corrections in outright prices have attracted buying interest. The bunker delivered premiums were up more than $8.50 above cargo prices last Friday.

This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $638
180 cst $648
MDO $942

Rotterdam

Indications for delivered bunkers:

380cst: $612
(1.0%): $659
180cst: $635
(1.0%): $684 (very low avails)
MGO 0.1%S: $935