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Oil prices rose strongly in electronic morning trading on Monday, supported by the decline of the dollar that lost ground vs the euro on renewed optimism that the negotiations over Greek's debts would. The EU's agreement to enact an Iranian oil embargo also lent some support, even though the move was widely expected and has already been mostly priced in. Investors also fretted about a possible restriction of the oil supply from South Sudan. Yet oil lost some of its momentum after the opening of NYMEX session and upside was limited by a strong 111.60 dollar resistance for the brent and the 100.00 dollar resistance for the WTI.

ICE Gasoil contract for February delivery settled at 937.00 dollars on Monday. This was 4.00 dollars above Friday's settlement. With some 43,100 contracts the traded volume was below average.

In a widely expected move the European Union agreed Monday to slap an embargo on oil imports from Iranfrom July 1st. Only Italyis allowed to get a limited quantity of Iranian oil also beyond this deadline as a redemption of debts. The E.U. imports about 600,000 barrels of oil a day from Iran, close to a quarter of Tehran's exports of 2.6 million barrels a day. Among the biggest buyers in Europeare those hit by severe economic strains: Greece, Italy and Spain. Under Monday's agreement the E.U. said it will review the policy's effects on member states by May 1, but any move to reverse or delay the embargo would require a unanimous decision of the E.U.'s 27 members.

Oil prices used up most of their upward potential within the existing trendchannels on Monday. Neither Stochastic oscillator nor RSI give any clear signals this morning. Resistance and support lines will limit oil's margin today, but fundamentals and forex will dominate the oil markets.

U.S.

Nymex acces gaining. Oil futures are little changed vs last night in Asian trading hours and on Globex electronic trading platform this morning, as speculation USoil inventories gained last week countered concern Iran will respond to a European embargo on its crude exports. The traded volume is below average. Market players will eye a string of economic indicators today and will take their cue from forex markets today. The development of the euro/dollar parity will have a great influence on oil prices.

Houston (ex-wharf indications 23-1)

380cst $668
180cst $704
MGO $1004

Very tight avails for 180 cst

New Orleans (ex-wharf indications 23-1)

380cst $670
180cst $707
MGO $1008

Singapore (Closed due to Chinese New Year)

High premiums for prompt deliveries.

380 cst $740
180 cst $752
MGO $986

Fujairah (delivered indications 24-1)

380cst $728
180cst $754
MGO $1050

ARA (Amsterdam - Rotterdam - Antwerp)

Despite stronger sentiment on the oil and capital markets on improved financial considerations Monday, trading activity across the Northwest European bunker hubs remained weak. Rotterdam bunker prices edged higher on firmer 3.5% barges, that firmed following stronger crude and ongoing high sulfur fuel oil shortages for prompt supplies. The market is supported by new fixtures for Singapore, with Koch, Eni and Litasco fixing some Suezmax on subjects, as well as there being a VLCC still to load.

Rotterdam

Indications for delivered bunkers:

380cst : $ 665
(1.0 %) :$ 676
180cst: $ 678
(1.0 %):$ 722
MGO 0.1%S: $943