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Technical indicators: neutral to bullish

Oil prices stayed rangebound in electronic trading, currently recovering from intraday lows, largely following the performance of the U.S. dollar. Analysts do not expect any major changes ahead of DOE data.

Due to ongoing political unrest in the Yemen, the country has halted its oil production averaging 290.000 barrels per day. Political instability, strikes and pipeline attacks had forced the government to take this step, so a spokesman of the national ministry of energy. The oil revenue accounts for three quarters of the country's national budget.

Yesterday oil prices traded in a narrow range on their high level in volatile electronic morning trading, edging marginally higher after the opening of the session in New York and rose above resistance lines in late NYMEX session and after-hour trading. The gasoline contract was the driving force behind the price increase, supported by the high waters of the Mississippi and imminent refinery disruptions. The weaker dollar also lent support, as did the gains of European and US equities.

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 941.25 dollars Tuesday night. This was 21.50 dollars above Monday's settlement. Volume with some 36,600 deals far below average.

Even though the Stochastic indicator's buying signal at the brent, the indicator remains bullish. The RSI at the brent chart crossed the 30% line, while the one at the WTI and the gasoil chart are about to breach the line, which would trigger more technical buying orders. Therefore technical analysts are still bullish today, even though prices will stay rangebound ahead of the release of DOE data in the afternoon. The first support for the WTI crude is seen at 103.00 dollars, the first resistance at 104.60 dollars. The Brent's first resistance is seen at 119.25 dollars, its first support is at 117.00 dollars.

U.S.

Nymex Access losing. Oil futures traded in a narrow range above Tuesday's highs in East Asia and Globex electronic trading this morning while gasoline prices slipped when traders took yesterday's big price increase to take profit. The traded volume is well above average.

APIs: crude oil +2.9; distillates +0.6; gasoline -1.8 million barrels vs previous week. Refinery utilization +/- 0.0%

DOEs: due out tonight.

Forecasts: crude oil +1.1; distillates +0.7; gasoline -0.2 million barrels vs previous week. Refinery utilization +0.7%

Houston (ex-wharf indications 10-5)

380 cst $635
180 cst $670
MDO $954

Very tight avails for 180 cst

New Orleans (ex wharf indications 10-5)

380 cst $637
180 cst $672
MDO $958

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

Crude is losing bullish momentum, gaining still with WTI +$1.63 Singapore paper is mirroring crude with +$4.75 for 180 cst and +$5.25 for 380 cst for May, and for Jun 180 cst +$5.55 and 380cst +$5.80 with MGO May contracts at +$2.02 and for Jun at +$2.14 The cargo market is in line with Crude and Paper, gaining with 180cst +$11.15 380cst +$10.83 and MGO +$1.43.

The Singapore fuel oil markets continued to rise more than $10.00 yesterday during the Platts window tracking some gains in crude values. The Asian fuel oil crack have strengthen considerably recently due to the sharp correction in crude and also strong buying interest. However, yesterday saw the crack softened after days of narrowing and Brightoil easing its buying agenda. The bunker delivered premiums were down, assessed app. $7.00 above cargo prices yesterday. This morning both markets are trading lower.

High premiums for prompt deliveries.

380 cst $651
180 cst $662
MDO $973

Fujairah (delivered indications 11-5)

380cst: $654
180cst: $691
MGO: $1040

Rotterdam

Indications for delivered bunkers:

380cst: $628
(1.0%): $662
180cst: $653
(1.0%): $689 (very low avails)
MGO 0.1%S: $955