---

Oil prices have risen during morning trade breaching first resistance lines. According to market participants this is due to ongoing protests by Kasakh oil workers. Moreover, the OPEC said that the Iranian oil production decreases as investments are lacking. The country also might have to face renewed sanctions against the backdrop of the troubles with the Western states due to Iran's possible nuclear weapon program. Constant insecurity regarding the impact of the European debt crisis on the global economy has capped oil futures gains, however.

Oil futures consolidated on a low level on Monday morning but finally rallied as supports proved strong which lead to a technical correction up. The decease of North Korean leader Kim Jong Il which might destabilise the region had a slightly bullish impact on the markets. Around middayoil futures reached their highs - for ICE futures these were between the first and the second resistances. In the course of the afternoon the dynamics up weren't enough for oil prices, however, to breach these bars. The agreement on credits of 150 billion euro for the IMF from the euro zone countries had already been expected and did not provide any new impetus. In a counterreaction on the resistances proving strong investors took some profit later in the afternoon. Market players liquidated their long-positions at the end of the day to reduce their risky positions ahead of Christmas, as trade is usually rather thin then. While ICE Gasoil and NYMEX Heating Oil renewedly tested supports in late trade, crude oil futures remained steadier. Analysts draw attention to the oil inventories survey that emerged bullish for crude oil as well as to the meeting in Romewhere G7 and 4 other countries are to discuss about new sanctions against the Iran.

ICE Gasoil contract for January delivery settled at 888.00 dollars on Monday. This was 6.25 dollars below Friday's settlement. With some 45,100 contracts the traded volume was below average.

The Stochastic indicator is still clearly on an oversold level but cannot be interpreted as bearish anymore. The lines of the indicator already cross giving a first bullish impulsion. If the Brent rises above Friday's and Monday's highs near 104.60 dollars, there will be more upward potential. Technical analysts thus assess the situation as rather bullish. The first support for the WTI is at 92.50 dollars today, its first resistance is seen at 94.80 dollars. The Brent's first resistance is seen at 104.60 dollars, its first support is at 102.35 dollars.

U.S.

Nymex acces gaining. Oil futures are edging higher in East Asiaand on Globex electronic trading platform this morning. The traded volume is about on average. Market participants look ahead to the opening of European markets, to the results of the talks in Romeregarding sanctions against the Iran, to today's economic indicators and to the API's forecast of USoil inventories at 10.30 p.m.

Houston (ex-wharf indications 19-12)

380cst $612
180cst $649
MGO $938

Very tight avails for 180 cst

New Orleans (ex-wharf indications 19-12)

380cst $614
180cst $652
MGO $942

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

Crude is bouncing back up with WTI +$1.44. Singapore paper is reacting as well with +$17.25 for 180cst and +$18.75 for 380cst for Jan, and for Feb 180 cst +$17.40 and 380cst +$18.60 with MGO Jan contracts at +$1.00 and for Feb +$0.85. The cargo market is slowing, but not turning bullish yet with 180cst -$4.05, 380cst -$3.01 and MGO -$1.13.

The Singapore heavy residual inventory reported a slight draw of -0.15 mbbl to 17.03 mbbl; which is still considered lower than the average of 19.6 mbbl. The delivered bunker premiums remain around $23.0 last Friday. Bunker fuel swaps closed the week with slight gains at the front of the forward curve and up to $4/mt losses at the backend both for Rotterdam3.5% fob barges and Singapore 380cst papers. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $658
180 cst $675
MGO $920

ARA (Amsterdam - Rotterdam - Antwerp)

Northwest Europe saw some demand for bunker fuel Monday as ongoing high and low sulfur fuel oil shortages in the ARA and relatively higher crude prompted some buyers to secure some volumes. There is not much demand on the market due to the upcoming Christmas holiday. According to sources, bunker premiums in Rotterdam could firm as some suppliers were expected to charge more for prompt deliveries. LSFO supplies in Antwerp remained very tight, with some indications the product will remain short until the end of the year.

Rotterdam

Indications for delivered bunkers:

380cst : $ 611
(1.0 %) :$ 657
180cst: $ 627
(1.0 %):$ 674
MGO 0.1%S: $898