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After oil prices have already edged lower during Asian trading, they have continued retreating around noon. The ICE G.Oil has breached its first support and the WTI crude has also fallen slightly below the mark of 106.50 dollars. The support is still seen as stable but if it is breached on the long run, more technical selling orders might weigh on prices. Market sentiment is slightly curbed by the Chinese trade balance showing considerable deficits in February and by the OPEC's rather bearish monthly report last week stoking concerns regarding oil demand.

Last Friday, oil prices gained somewhat in the morning, but fell during the day, as investors took profit on a rising U.S. dollar. Hopes that the positive US employment figures would rekindle oil demand helped prices up in the afternoon but a rather bearish OPEC report weighed. The still bullish market sentiment and the bullish technical constellation supported the oil complex later in the session and first resistance lines were breached. The still strong dollar limited the gains.

ICE Gasoil contract for March delivery settled at at 1,033.75 dollars on Friday. This was +1.00 dollar compared to Thursday's settlement. With some 35,500 contracts the traded volume was far below average.

The Stochastic oscillator at the ICE and NYMEX charts stays bullish this morning but is not giving any clear signals. At the ICE, the indicator is set to enter the overbought level. Last week's rally has taken some of the bullish sentiment off the markets. The brent has a strong short-term resistance at 126.35 dollars that limits possible gains for the time being. Only above this level technical analysts expect more buying orders. Medium-term brent supports at 123.35 and 122.45 dollars set the lower limits for profit taking should the dollar stay strong.

U.S.

Nymex acces easing. Oil futures lost ground in Asian trading hours and on Globex electronic trading platform this morning as a rising dollar encouraged profit taking and after China announced its highest trade deficit in ten years. The traded volume is little below average. Due to a lack of indicators, investors will eye forex markets for direction today.

Houston (ex-wharf indications 9-3)

380cst $727
180cst $768
MGO $1053

Very tight avails for 180 cst

New Orleans (ex-wharf indications 9-3)

380cst $729
180cst $770
MGO $1056

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

Crude is slowing with WTI -$0.08 Singapore paper is turning again with +$1.75 for 180cst and +$1.80 for 380cst for Mar, and for Apr 180 cst +$1.48 and 380cst +$1.45 with MGO contracts Mar -$0.15 and Apr -$0.26. The cargo market is mixed with 180cst -$9.91, 380cst -$9.71 and MGO +$1.60.

The Singapore fuel oil markets were up app. $6.0 Yesterday morning. The Singapore heavy residual inventory saw a draw of -0.38 mbbl to 21.41 mbbl. The delivered bunker premiums were seen around $4.0 above cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $727
180 cst $741
MGO $1035

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA hsfo markets were bearish last Friday, as the high levels kept the buyers aloof. The lsfo tightness is not expected to resolve soon, with present loading delays not contributing to any swift inversion, shortages are expected until next month.

Rotterdam

Indications for delivered bunkers:

380cst : $ 708
(1.0 %) :$ 764
180cst: $ 732
(1.0 %):$ 777
MGO 0.1%S: $1025