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As was to be expected, oil futures consolidated on a high level this morning, with the single exception of the WTI crude which has already fallen through first supports on a bearish market situation in the USA and on forecasts of builds in US crude oil stocks. Thus the spread between the Brent and the WTI crude has - as presumed - increased to some 20 dollars and is likely to rise even more. As there aren't any important economic data on schedule today, and as investors are already looking ahead to the publication of US oil inventories, analysts do not expect any larger fluctuations the course of the day.

After trading in a narrow lateral range with a bearish tone in electronic morning trading oil futures rose after the opening of NYMEX session on the bullish technical aspects and easing worries about a Greek failure after German chancellor Angela Merkel ensured that the EU would at any rate prevent this, helping the euro up and pushing Brent oil to a six-month high of 116.68 dollars. Cold weather in Europe boosted heating fuel demand, supporting NYMEX H.Oil and G.Oil at the ICE, while the WTI crude remained depressed by the bearish fundamental situation in the USA.

ICE Gasoil contract for February delivery settled at 988.25 dollars on Monday. This was 28.75 dollars above Friday's settlement. With some 50,100 contracts the traded volume was little 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 Stochastic oscillator is still bullish at the ICE and NYMEX charts even though at the overbought level as is the RSI indicator, with the exception of the WTI crude contract that stays depressed by bearish fundamentals, see also technical analysis. Still, the overall market situation remains bullish, even though technical analysts see oil prices consolidating on their high level today and technically driven buying orders would only be triggered if the ICE futures rise above Monday's highs. Traders will eye forex markets for direction. A rising dollar should entail some profit taking.

U.S.

Nymex acces losing. Oil futures are edging lower in Asian trading hours and on Globex electronic trading platform this morning as investors take some profit after Monday's gains. The traded volume is about on average. As there are no important indicators on the agenda today, traders will eye the dollar and equity markets for direction.

Houston (ex-wharf indications 6-2)

380cst $687
180cst $723
MGO $1033

Very tight avails for 180 cst

New Orleans (ex-wharf indications 6-2)

380cst $689
180cst $725
MGO $1036

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

Crude is turning slightly with WTI -$0.17 Singapore paper slowing but not turning yet with +$4.25 for 180cst and +$4.50 for 380cst for Feb, and for Mar 180 cst +$7.50 and 380cst +$6.95 with MGO Feb contracts at +$1.95 and for Mar +$1.96. The cargo market is gaining now with 180cst +$14.07, 380cst +$13.99 and MGO +$2.23.

The Singapore fuel oil markets were down more than -$12.0 during the morning last Friday. The heavy selling in the Fuel Oil market softened the Asian Fuel Oil crack. The delivered bunker premiums inched up around $26.5 above cargo prices. Bunker fuel oil swaps gained a few dollars at the front and up to $5.50/mt at the backend of the forward curve. This morning markets are trading significantly higher.

High premiums for prompt deliveries.

380 cst $730
180 cst $740
MGO $985

Fujairah (delivered indications 7-2)

380cst $722
180cst $742
MGO $1040

ARA (Amsterdam - Rotterdam - Antwerp)

In Northwest Europe bunker fuel prices were up on stronger outright oil prices and bullish sentiment on the 3.5% hsfo barge market, with another VLCC fixture, and cold weather conditions underpinning the market. High Chinese refinery demand is supporting the arbitrage to Singapore.

Rotterdam

Indications for delivered bunkers:

380cst : $ 678
(1.0 %) :$ 699
180cst: $ 701
(1.0 %):$ 723
MGO 0.1%S: $990