---

After having slid in electronic trading this morning, oil prices have regained ground around noon rising to their first resistance lines on a bullish technical constellation. ICE G.Oil has even breached its first resistance. Prices have also been supported by the renewed rise of the European currency and gaining equities. Meanwhile, the Iran has confirmed that it may already stopp exporting oil to the EU by next week, in case the parliament would agree to this measure on Sunday.

Oil prices consolidated Thursday morning in electronic trading before regaining ground on the FED's decision to leave core interest rates at their near-zero level for an extended period of time. The announcement weighed on the dollar, supporting oil prices. After first resistance lines were breached, technically driven buying orders kept prices on their heigh level. Iran's announcement that it considers stopping oil exports to Europe to pre-empt the ban on Iranian oil added to the bullish sentiment. However, as Iran will keep selling its oil on international markets and in Asia, investors seem not to worry too much about a disruption of supplies. On the contrary: after mixed US economic indicators hit the markets in the afternoon market participants took profit and prices lost ground during the session in New York. While ICE futures and the heating oil recovered, settling modestly higher in the end, WTI crude finished the session about on previous days' level.

ICE Gasoil contract for February delivery settled at 944.75 dollars on Thursday. This was 2.50 dollars above Wednesday's settlement. With some 32,600 contracts the traded volume was significantly below average.

OPEC: The Iranian parliament is set to debate a plan to abruptly halt Tehran's oil exports to the European Union, in a bid to pre-empt a phased European Union embargo on Iranian oil imports starting the first of July. But the Iranian lawmakers are seeking an abrupt interruption that would not allow a smooth transition to other crudes and potentially push prices up. Not only Iran's oil exports to Europewill be stopped until the next five years, but Iran's exports to Europewill also stop, according to a lawmaker. Iran exports mostly oil to Europe but also some petrochemicals. At the same time Tehrancalled on OPEC to prevent Saudi Arabiafrom hiking its output.

The Stochastic oscillator is still in bullish mode at ICE and NYMEX charts this morning, while the RSI is in the neutral area. Therefore technical analysts see oil prices near-term positive, exposing upside to 101.25 dollars (WTI) and 111.75 dollars (Brent). Technical selling orders would only be triggered should the Stochastic's lines converge.

U.S.

Nymex acces gaining. Oil futures are losing ground in Asian trading hours and on Globex electronic trading platform this morning, but crude prices are largely rangebound as market participants weighed Iran's latest threat to disrupt oil supplies and a firmer dollar due to renewed concerns about the European debt crisis. The traded volume is about on average. Market players will eye financial shares and the development of the U.S. dollar today. A couple of U.S. indicators might give some direction in the afternoon.

Houston (ex-wharf indications 26-1)

380cst $668
180cst $704
MGO $1003

Very tight avails for 180 cst

New Orleans (ex-wharf indications 26-1)

380cst $670
180cst $706
MGO $1005

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

Crude is turning slightly bearish, losing with WTI -$0.13. Singapore paper is mixed with -$0.05 for 180cst and +$0.90 for 380cst for Feb, and for Mar 180 cst -$0.10 and 380cst +$0.50 with MGO Feb contracts at +$0.30 and for Mar +$0.25. The cargo market is only now starting to react to bearish start of the week, losing with 180cst +$5.52, 380cst +$4.72 and MGO +$0.35.

The Singapore fuel oil markets recovered most of its previous day's losses, gaining almost $2.90 during the morning Platts trading window, strengthening even after the window closed. Market continues to be supported by supply issues in the region. The delivered bunker premiums were seen around $26.0 above cargo prices yesterday. This morning markets are trading higher.

High premiums for prompt deliveries.
380 cst $725
180 cst $740
MGO $940

Fujairah (delivered indications 27-1)

380cst $727
180cst $752
MGO $1045

ARA (Amsterdam - Rotterdam - Antwerp)

High sulfur bunker fuel prices in the ARA firmed late Wednesday, following a steeper backwardation on the 3.5% Rotterdam barge market prompted by very tight supplies. Even though crude is weaker, the market in ARAis firming due to product shortage. With continuing congestion and tight supplies only adding to the current bullishness. 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 : $ 679
(1.0 %) :$ 685
180cst: $ 687
(1.0 %):$ 728
MGO 0.1%S: $956