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As expected, after last night's gains oil futures have been weighed down by some profit taking this morning. A rather bearish constellation and the dollar's continuous gains have put some pressure on prices. The Brent has even briefly fallen through its support at 125.70 dollars. Yet with a low of 125.55 dollars, the support can still be considered as stable. Around midday, however, a good performance at stock markets and a softer dollar slightly made oil prices rise again.

The oil complex remained in a narrow range on a high level Tuesday morning. On the financial market, investors' demand for the dollar grew, as another round of the Fed's quantitative easing became more and more unlikely after US economic data emerged mostly positive in the past few weeks. Market sentiment had particularly improved given the figures regarding the country's labor market. Better than expected US retail sales data additionally supported the dollar Tuesday afternoon weighing slightly on the euro, despite of the well enough figures regarding the ZEW economic sentiment. The European currency fell through several supports, which had a bearish effect on oil prices. The latter likewise tested their first supports temporarily. However, after supports at 105.75 dollars for the WTI crude and at 1,025.50 for the Gasoil remained strong and equities marked some gains, oil futures regained some ground on technical buying. While the WTI crude remained within its technical triangle, the Brent was able to breach its resistance line at 126.35 dollars. This rendered possible some more upward potential. The decisions which were announced by the Fed yesterday evening did not come as a surprise and so oil futures at ICE and NYMEX settled near their intraday highs.

ICE Gasoil contract for April delivery settled at at 1,036.50 dollars on Tuesday. This was +8.25 dollars below Monday's settlement. With some 73,400 contracts the traded volume was above average.

The stochastic indicator gives some selling signals, after its lines have crossed at ICE and NYMEX charts. Even though the Brent breached its resistance line yesterday evening, rendering possible some more upward potential, technical analysts expect some profit taking within the technical range, given the stochastic's bearish impulsions. Market participants look ahead to further decisive information as the DOE's data which will be published later in the afternoon. Should these emerge bearish, the support limiting the WTI crude's technical triangle might be hit. Below this line more technical selling orders are likely.

U.S.

Nymex acces easing. Oil futures retreated in Asian trading hours and on Globex electronic trading platform this morning. The traded volume is far above average. Market players now eye the development at European stock exchanges, impulsions from forex markets and the DOE's data on US oil inventories, which will already be published at 3.30. p.m. today, given the switch to daylight saving time in the USA last weekend.

API's: Crude oil +2.8; distillates -3.5; gasoline -2.1 million barrels vs previous week. Refinery utilization -1.5%
DOE's; due out tonight
Forecasts: Crude oil +1.6; distillates -1.1; gasoline -1.2 million barrels vs previous week

Houston (ex-wharf indications 13-3)

380cst $727
180cst $768
MGO $1053

Very tight avails for 180 cst

New Orleans (ex-wharf indications 13-3)

380cst $729
180cst $770
MGO $1056

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

Crude is slowly turning bullish again with WTI -$0.48 Singapore paper is slowing, but not yet turning with +$0.75 for 180cst and +$0.75 for 380cst for Mar, and for Apr 180 cst +$0.95 and 380cst +$0.75 with MGO contracts Mar +$0.40 and Apr +$0.41. The cargo market is bullish still with 180cst +$12.35, 380cst +$11.57 and MGO +$0.14.

The Singapore fuel oil markets were up more than $11.5 during yesterday morning, despite a stable crude. The fuel oil swap market was filled with strong interest which narrowed the Asian crack spread sharply. The delivered bunker premiums remain sluggish at around $1.25 above cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $741
180 cst $752
MGO $1010

Fujairah (delivered indications 14-3)

380cst $742
180cst $762
MGO $1050

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA hsfo markets firmed, trading considerably higher on surging crude. The tight avails of cutterstocks underpin the markets. 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 : $ 725
(1.0 %) :$ 775
180cst: $ 752
(1.0 %):$ 799
MGO 0.1%S: $1035