---

Oil futures have climbed at the beginning of the European session as the euro gained some ground. The ICE G.Oil has briefly exceeded its first resistance. Oil prices are also underpinned by news the EU finally agreed on an oil embargo against the Iran, which is to start from July 1st.

Friday, oil prices got some support in East Asia by the strong performance of equities but soon lost ground in European morning trading when investors took profit on the euro and the WTI crude fell through the psychologically important 100 dollar support. Due to a lack of fundamental news that could give some direction, market participants focus shifted back to the Euro zone debt crisis and Iran. Greece and its private creditors did not come to an agreement on a debt swap deal and Iran's readyness to welcome IAEA inspectors in the country by the end of January eases concerns on an imminent supply shortage. More support lines were breached during the session in New Yorkand only the Brent's solid 109.65 dollar support stopped oil's fall.

ICE Gasoil contract for February delivery settled at 933.00 dollars on Friday. This was 10.25 dollars below Thursday's settlement. With some 44,000 contracts the traded volume was below average.

Opec: Saudi Arabia sent a crystal clear message this week to the oil market: $100 a barrel is the new normal. In an interview with CNN, Ali Naimi, the powerful Saudi oil minister, said: "Our wish and hope is we can stabilise this oil price and keep it at a level around $100." The new favoured price is a third higher than the $75-a-barrel level that King Abdullah said was a "fair price" in November 2008.

The Stochastic oscillator at the ICE charts doesn't give any clear signals this morning but is slightly bearish for the WTI crude, even though at the oversold level, as is the RSI indicator. A short-term downtrend has formed for all contracts but the oversold markets would amplify an upward correction that could be triggered after Friday's selloff.

U.S.

Nymex acces gaining. Oil futures edge higher in Asian trading hours and on Globex electronic trading platform this morning, getting some support from expectations that European Union governments will come to an agreement today on the oil embargo against Iran. The traded volume is on average. Due to a lack of economic indicators market players will take their cue from the euro and equity markets today.

Houston (ex-wharf indications 20-1)

380cst $668
180cst $704
MGO $1004

Very tight avails for 180 cst

New Orleans (ex-wharf indications 20-1)

380cst $670
180cst $707
MGO $1008

Singapore (Closed today and tomorrow due to Chinese New Year)

High premiums for prompt deliveries.

380 cst $736
180 cst $747
MGO $955

Fujairah (delivered indications 23-1)

380cst $732
180cst $755
MGO $1049

ARA (Amsterdam - Rotterdam - Antwerp)

Bunker fuel prices in the main Northwest European bunker hubs fell sharply Friday following dwindling 3.5% Rotterdambarge values as Brent crude fell $1/barrel day-on-day and buying interest waned. The Rotterdam 380 CST low sulfur fuel oil premium over HSFO widened on tumbling 3.5% Rotterdam barges and some support for LSFO barges. A weak Med/North spread, made it uneconomic to ship fuel oil from Rotterdam south into the Med, turning off one common outlet for NWE fuel oil exports.

Rotterdam

Indications for delivered bunkers:

380cst : $ 665
(1.0 %) :$ 679
180cst: $ 683
(1.0 %):$ 726
MGO 0.1%S: $940