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Oil prices traded in a narrow range in the morning within their technical limits. Market investors were cautious, waiting for further information on the release of strategic reserves in the USA ahead of the driving season and for news regarding the Iran conflict. Around noon, the sentiment turned more bullish, as most analists anticipate optimistic economic data to be released later today.

Oil futures at ICE and NYMEX traded sideways in a rather narrow range in the morning. At ICE first supports were breached in the afternoon triggering further technical selling orders. Losses were limited, however, as equities marked gains, the dollar slightly retreated and the WTI crude bounced off its 105.10 dollars support little later. Reports claiming that the USA and the UK had agreed on releasing strategic reserves made prices sharply fall. Oil futures finally breached their short term supports. Investors reduced their long positions, waiting for the reports to be confirmed by officials. The White House later called the reports "unexact" and "false", however. Quotations pulled back from their lows after these comments but still settled lower than on the previous day.

ICE Gasoil contract for April delivery settled at at 1,024.00 dollars on Thursday. This was -14.50 dollars below Wednesday's settlement. With some 85,300 contracts the traded volume was above average.

The stochastic indicator at ICE and NYMEX remains bearish this morning, even though its lines already approach again. Yesterday's sharp downward correction has probably consumed most of the bearish potential, as market participants reduced larger long positions after the reports on a release of strategic reserves. Short term supports were breached but the WTI crude's support at 103.75 dollars remained strong. Technical analysts expect prices to consolidate, with market players being likely to react sensitively to further reports on the topic of "strategic reserves".

U.S.

Nymex acces easing. Oil futures hardly changed in Asian trading hours and on Globex electronic trading platform this morning. Market participants are consolidating their positions after trade became jittery yesterday evening. The traded volume is slightly below average. Investors now eye the development at European stock exchanges, impulsions from forex markets and today's economic indicators see economic calendar.

Houston (ex-wharf indications 15-3)

380cst $732
180cst $767
MGO $1063

Very tight avails for 180 cst

New Orleans (ex-wharf indications 15-3)

380cst $735
180cst $770
MGO $1066

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

Crude is slowing, losing with WTI -$0.34 Singapore paper is easing as well with -$0.30 for 180cst and -$1.15 for 380cst for Apr, and for May 180 cst -$0.30 and 380cst -$1.15 with MGO contracts Apr -$1.00 and May -$1.01. The cargo market is in line with crude and paper 180cst -$4.19, 380cst -$5.91 and MGO -$0.23.

The Singapore fuel oil markets were up marginally by $1.0 during the morning. The latest Singapore heavy residual inventory was up +0.50 mbbl to 21.91 mbbl; the highest level in 11 months. The delivered bunker premiums were seen around $2.0 to $3.0 above cargo prices. Bunker fuel oil swaps lost in a range of $12-11/mt at the front and app.$10/mt at the backend of the forward curve both for Singapore and Rotterdam papers. This morning both markets are trading up.

High premiums for prompt deliveries.

380 cst $734
180 cst $747
MGO $1010

Fujairah (delivered indications 16-3)

380cst $742
180cst $764
MGO $1049

Avails issue are sustaining the market.

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA softened Yesterday, tracking declining crude, on rumors the US and UK are about to release some of their strategic reserves. The effect is however considered to be temporarily. 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. In the MOC hsfo was traded between 698-701 usd and lsfo between 745-749 usd.

Rotterdam

Indications for delivered bunkers:

380cst : $ 707
(1.0 %) :$ 755
180cst: $ 732
(1.0 %):$ 765
MGO 0.1%S: $1028