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Oil futures have climbed during morning trade, with Brent and WTI crude approaching their first resistances. Currently the complex is dominated by the geopolitical backdrop. Japan has announced it would reduce oil imports from Iran. The country is almost completely dependant on oil imports, still covering about 10% of its demand with Iranian oil. US finance minister Timothy Geithner has visited Asia to convince the region's leaders of a boycott of Iranian oil. He has also visited China but the country had already opposed to sanctions or an oil embargo prior to Geithner's visit. Still, China's Prime minister Wen Jiabao will travel to the Middle Easton Saturday to take part in a meeting of the energy sector. In the afternoon, US economic data (retail sales and jobless claims) might provide some more impulsions.

Yesterday, After a slip in early Asian trading hours oil prices rose in electronic morning trading on a better-than-expected German indicator and a rise in the euro. When first resistance lines at the ICE proved strong and investors started selling the euro vs the dollar, market participants got rid of their long positions. The selloff gained steam after the DOE's weekly oil data showed a sharp drop in demand and a larger-than-expected rise in crude oil and product stockpiles and oil prices eventually settled lower in London and New York. When support lines proved strong as expected the oil complex started to recover in overnight trade.

Europe's biggest independent refiner Petroplus Holdings AG obviously has reached a temporary agreement with its creditors to allow the financially imperiled company to continue operating two of its refineries in Coryton, U.K., and Ingolstadt, Germany, even as it closed three others after more than 2 billion dollars of the company's credit were frozen since December. Petroplus has posted losses in every quarter except one since 2009 as Brent oil prices have climbed even as high unemployment in Europe erodes fuel demand. Petroplus' five refineries have a combined capacity of 677,000 barrels a day.

ICE Gasoil contract for January delivery settled at 971.00 dollars on Wednesday. This was 3.00 dollars below Tuesday's settlement. With some 24,700 contracts the traded volume was well below average. The contract expires today.

The modestly bearish Stochastic oscillator has no significant influence on oil markets for the time being. Support and resistance lines limit oil's margin today and indicate a consolidation on a high level. Only when key support or resistance lines are breached, will there be fresh momentum. Technical triangles have formed at the Brent and the WTI chart, determining the margin for today. NYMEX crude is still seen in the range of 110.00 to 103.75 dollars.

U.S.

Nymex acces gaining. Oil futures are gaining in Asian trading hours and on Globex electronic trading platform this morning on technical buying after support lines proved strong last night. The traded volume is slightly below average. A string of important economic indicators is expected to give some direction later today.

API's: Crude oil +0.4; distillates +0.8; gasoline +1.9 million barrels vs previous week. Refinery utilization +1.1%
DOE's; Crude oil +5.0; distillates +4.0; gasoline +3.6 million barrels vs previous week. Refinery utilization +0.6%
Forecasts: Crude oil +0.7; distillates +1.8; gasoline +2.1 million barrels vs previous week

Houston (ex-wharf indications 11-1)

380cst $676
180cst $712
MGO $1012

Very tight avails for 180 cst

New Orleans (ex-wharf indications 11-1)

380cst $678
180cst $714
MGO $1015

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

Crude is easing, losing Yesterday's gains with WTI -$0.59. Singapore paper is mirroring crude with -$3.75 for 180cst and -$3.25 for 380cst for Jan, and for Feb 180 cst -$4.00 and 380cst -$3.25 with MGO Jan contracts at -$0.65 and for Feb -$0.65. The cargo market is gaining still with 180cst +$12.66, 380cst +$16.05 and MGO +$0.61.

The Singapore fuel oil markets surged +$12.0 to $16.0 as continued strong interest in buying the fuel oil swaps extended the Asian Fuel Oil crack strength sharply. The delivered bunker premiums were around $22.0 above cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $725
180 cst $735
MGO $960

Fujairah (delivered indications 12-1)

380cst $725
180cst $750
MGO $1050

ARA (Amsterdam - Rotterdam - Antwerp)

The Rotterdam high sulfur bunker fuel market was largely supported again Wednesday, with traders citing extreme tightness in the fuel oil complex as driving up prices, despite Brent crude’s day-on-day fall. High sulfur 380CST delivered bunker was assessed at $686.50/mt, up $2.00/mt on Tuesday’s assessment. The Antwerp high sulfur bunker fuel market stayed bullish on Wednesday, with high sulfur 380CST delivered bunker also assessed at $686.50/mt, up $1/mt on Tuesday’s assessment. However Antwerp low sulfur 380CST bunker lost $14.00/mt Wednesday to be assessed at $705.50/mt.

Rotterdam

Indications for delivered bunkers:

380cst : $ 689
(1.0 %) :$ 698
180cst: $ 698
(1.0 %):$ 722
MGO 0.1%S: $975