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Oil prices have edged higher after the opening of the European session. They have been supported by increasing worries regarding the Iran's nuclear program and by gaining equities. Investors also fear disruptions in supply due to the strikes in Nigeria. NYMEX C.Oil is currently approaching its second resistance line.

Yesterday, support lines at ICE and NYMEX proved strong in electronic morning trading oil futures edged higher on technical buying orders, also helped up by the rising euro that recovered from a 16-month low. Later in the day investors bet on the rather bearish technical constellation, taking advantage of the rise in prices to take profit. When first support lines were breached in the process, a string of technical selling pushed WTI crude oil as low as 100.10 dollars where a solid psychological support at 100.00 dollars stopped the price collapse and triggered a modest technical upward reaction. Yet eventually prices settled lower both in Londonand New York.

The implementation of a second plant for uranium enrichment exacerbated the dispute with Western powers that suspect Tehran is seeking a nuclear weapons capability. The plant is able to carry out uranium enrichment to a fissile purity of 20 percent which is necessary to achieve weapons-usable fissile material. The site is out of harm's way deep inside a mountain. While Iranclaims that the uranium is meant for civilian use only, Israelhas threatened to take military action should Tehran build nuclear weapons.

ICE Gasoil contract for January delivery settled at 959.00 dollars on Monday. This was 1.75 dollars below Friday's settlement. With some 39,000 contracts the traded volume was below average.

The stochastic oscillator at the ICE and NYMEX charts stays bearish but its lines are converging, a sign that the technical downside risk has decreased after investors took profit on Monday. So technical analysts assess the situation as neutral today. Should the two lines of the Stochastic oscillator cross, a bullish signal would be triggered.

U.S.

Nymex acces gaining. Oil futures edged higher in early Asian trading and on Globex electronic trading platform on technical buying orders after the WTI's 100.00 dollar support proved strong Monday and spurred by tensions over Iran's nuclear programme that will limit today's downside. A positive Chinese trade balance in December also lend some support. The traded volume is on average. There are no important economic indicators on the agenda today, so market participants will eye fundamentals and forex for direction.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Thursday at 17:00(DOE)

Crude oil +0.7; distillates +1.8; gasoline +2.1 million barrels vs previous week.

Houston (ex-wharf indications 9-1)

380cst $673
180cst $708
MGO $1012

Very tight avails for 180 cst

New Orleans (ex-wharf indications 9-1)

380cst $676
180cst $710
MGO $1015

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

Crude is bouncing up with WTI +$0.42. Singapore paper is reacting to this turn, gaining with +$5.50 for 180cst and +$4.75 for 380cst for Jan, and for Feb 180 cst +$5.00 and 380cst +$3.50 with MGO Jan contracts at +$0.07 and for Feb +$0.09. The cargo market is mixed with 180cst +$0.02, 380cst -$2.70 and MGO +$0.81.

The Singapore fuel oil markets were down -$2.5 to flat during the Platts window yesterday. The market continued to be tight on prompt while expecting incoming supplies moving into the month. The delivered bunker premiums were around $24.5 above cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $715
180 cst $725
MGO $965

ARA (Amsterdam - Rotterdam - Antwerp)

The Rotterdam bunker fuel market stayed strong at the start of the week, despite Brent crude oil falling — outright prices for 380CST high sulphur delivered bunker were up $1.00/mt to $672.50/mt, on Monday. Traders continued to see bunker prices as supported by strong fuel oil fundamentals. In the MOC 1% 688 usd were the levels traded, with hs 661.50-673.50 usd levels traded.

Rotterdam

Indications for delivered bunkers:

380cst : $ 684
(1.0 %) :$ 705
180cst: $ 698
(1.0 %):$ 720
MGO 0.1%S: $970