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The still unresolved question regarding Greece's debt has sent equities down during morning trade. The euro has also lost ground and so oil futures likewise dropped. The WTI crude has tested its first support at 101.00 dollars, which remained strong however. The impact of the Iran's threat to halt exports to some European countries, have already ebbed. Market players consider it unlikely that the Iran will actually deliver on this threat, given the country's dependance on oil revenus against the backdrop of the EU's sanctions. Oil futures' losses have remained limited, however, as investors look ahead to important US economic indicators and as reports from Yemen provide some support. Yemen's oil production has come to a halt on a strike of oil workers of the local company PetroMasila. 900,000 barrels out of the 4.5 to 5 million barrels the country exports daily are currently lacking per day.

Oil futures at ICE and NYMEX consolidated on a high level in the morning supported by a stronger euro and optimism at equity markets, the buying signal that the Stochastic oscillator gave at the gasoil chart lending additional support. At noon a report from an Iranian state television broadcaster saying Tehran had cut its oil exports to six European nations lifted oil prices, exposing oil markets' nervousness over any abrupt Iranian oil disruption. Even though later denied by the Iranian government, the report lent support throughout the session. The unexpected drop in US crude stocks gave oil a temporary lift but the gains were limited by the late drop in the euro and equity markets.

OPEC: Oil futures have sharply risen after reports said that the Iran had realised its threat to immediately cut oil exports to six European countries. Whereas the G.Oil at ICE has breached its second resistance at 1003.25 dollars, the WTI Crude has climbed above the mark of 102.00 dollars.

ICE Gasoil contract for March delivery settled at 1,005.75 dollars on Wednesday. This was 13.50 dollars above Tuesday's settlement. With some 71,400 contracts the traded volume was above average.

The two lines of the Stochastic oscillator at the Brent and the gasoil charts have crossed this morning, giving markets a buying signal, while the indicator at the WTI chart is still neutral, see also technical analysis. Technical analysts are therefore slightly bullish. The WTI stays depressed by the strong build in Cushing oil stocks but its support lines are seen strong. Should they be breached though, the overbought market situation would favour a downward correction.

U.S.

Nymex acces gaining. After a limited downward correction, oil futures are recovering in Asian trading hours and on Globex electronic trading platform this morning, with the exception of NYMEX crude oil that remains depressed by the high Cushing oil stocks. The traded volume is well above average. Market participants will eye the developments in Iran and a string of important economic indicators today.

API's: Crude oil +2.9; distillates -2.2; gasoline +1.8 million barrels vs previous week. Refinery utilization -0.2%
DOE's; Crude oil -0.2; distillates -2.9; gasoline +0.4 million barresl vs previous week. Refinery utilization +1.2%
Forecasts: Crude oil +1.9; distillates -0.9; gasoline -0.1 million barrels vs previous week

Houston (ex-wharf indications 15-2)

380cst $714
180cst $755
MGO $1053

Very tight avails for 180 cst

New Orleans (ex-wharf indications 15-2)

380cst $716
180cst $757
MGO $1056

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

Crude is slowly turning again, lowing with WTI -$0.42 Singapore paper is cautious with +$0.25 for 180cst and -$0.25 for 380cst for Feb, and for Mar 180 cst +$0.25 and 380cst -$0.25 with MGO Feb contracts at -$0.25 and for Mar -$0.25. The cargo market is lagging, gaining with 180cst +$2.94, 380cst +$4.82 and MGO +$1.26.

The Singapore fuel oil markets lost more than $11.0 during the morning Yesterday. The delivered bunker premiums continued to soften assessed at around $13.5 above cargo prices yesterday as market avails increased. Bunker fuel oil swaps lost in a range of $6.0-8.0/mt along the curve for papers with losses slightly more pronounced at the front of the forward curve. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $726
180 cst $737
MGO $1006

Fujairah (delivered indications 16-2)

380cst $727
180cst $750
MGO $1048

ARA (Amsterdam - Rotterdam - Antwerp)

Sentiment in the ARA was mixed, with surging crude further tightening the markets. The Antwerp pilot strikes and the slow motion actions are still causing much delays. HSFO availability in Rotterdam remained tight, with prompt barge delays were still a feature of the market, with some buyers waiting as long as seven days. Meanwhile, adding to the tightness of LSFO in Antwerp, vessel experience delays caused by industrial action by ship pilots. In the MOC hsfo was traded at 690-691 usd and lsfo at 718 usd.

Rotterdam

Indications for delivered bunkers:

380cst : $ 693
(1.0 %) :$ 719
180cst: $ 714
(1.0 %):$ 741
MGO 0.1%S: $993