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After Oil prices have cosolidated in the morning, they rebounded around noon in the wake of the positive developments at the stock markets. Oil futures at ICE breached some resistance lines. As both positive as well as negative US employment fitures might weigh on the usd, the usd already retreated ahdead of the publication of the labor statistics, later today.

Oil futures in London and New York started higher in the day but the rising dollar and technically driven selling orders soon put significant pressure on prices. Investors' risk aversion had risen after mixted U.S. indicators, supporting the dollar as a safe-haven currency. A high volatility during the session in New York led to more profit taking. But while the Brent crude advanced for a third day, supported by geopolitical risks from Iran and Sudan, WTI crude oil futures tumbled to a fresh six-week low, falling below its 96.40 dollar support as the combination of falling demand and resulting rising inventories in the U.S. is putting significant pressure on prices, despite better-than-expected U.S. employment data. At the close, the gap between NYMEX and Brent front-month contracts remained wider than 14.00 dollars.

ICE Gasoil contract for February delivery settled at 947.75 dollars on Thursday. This was 7.50 dollars below Wednesday's settlement. With some 36,700 contracts the traded volume was significantly below average.

OPEC: Iraq does not intend to replace Iranian crude oil following the imposition of foreign sanctions. None of the European countries who used to buy Iranian oil has asked Iraq for replacement, so an official who also said that Iraq has no spare oil to replace the Iranian crude and that all volumes of Iranian crude are sold through term contracts for the current year. Figures show that production from OPEC's 12 members was up 75,000 barrels a day to 31.165 million barrels a day of oil in January (incl. Iraq). The output level remained about 1 million more than the 30 million barrels a day OPEC agreed to produce at a meeting last December and increased despite lower demand in the first half of this year. Production increases are seen in Libya, Iraq, Kuwait, Angola and Qatar.

The RSI indicator is at the oversold level at the WI chart, while the two lines of the Stochastic are converging. Should they cross, a buying signal is triggered. The current volatile market situation does not allow for accurate prognoses, so technical analysts see short-term support and resistance lines giving momentum today.

U.S.

Nymex acces gaining. Oil prices are trading in a narrow lateral range in Asian trading hours and on Globex electronic trading platform this morning, taking their breath after Thursday's volatile session. The traded volume is about on average. Traders are eyeing a string of important EU and U.S. indicators for direction today.

Houston (ex-wharf indications 2-2)

380cst $674
180cst $710
MGO $1023

Very tight avails for 180 cst

New Orleans (ex-wharf indications 2-2)

380cst $676
180cst $712
MGO $1026

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

Crude is dropping with WTI -$1.47 Singapore paper is adopting the bearishness, losing with -$12.00 for 180cst and -$13.00 for 380cst for Feb, and for Mar 180 cst -$12.00 and 380cst -$13.00 with MGO Feb contracts at -$0.39 and for Mar -$0.32. The cargo market is starting to react to crude and pater with 180cst -$9.20, 380cst -$9.75 and MGO -$0.32.

The Singapore fuel oil markets were up slightly ranging from +$0.5 to +$1.5 during the early morning yesterday. The Singapore heavy residual inventory showed a build of +1.58 mbbl to 19.71 mbbl. The delivered bunker premiums eased marginally, seen at around $25.0 above cargo prices yesterday. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $725
180 cst $735
MGO $950

Fujairah (delivered indications 3-2)

380cst $709
180cst $729
MGO $1030

ARA (Amsterdam - Rotterdam - Antwerp)

The Rotterdam bunker fuel market eased somewhat, while the Eastern arbitrage still workable. High Chinese refinery demand is supporting the arbitrage to Singapore. The easing levels are not yet attracting much more demand.

Rotterdam

Indications for delivered bunkers:

380cst : $ 667
(1.0 %) :$ 683
180cst: $ 681
(1.0 %):$ 705
MGO 0.1%S: $950