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In the wake of weaker equities and an advancing dollar, oil futues have lost some ground during morning trade. First supports at ICE have been breached. Levels are still far from their next supports however, and the rather bullish technical constellation is likely to limit losses in the afternoon. There is no decisive news as of yet, therefore analysts expect oil futures to consolidate.

After a period of consolidation in electronic morning trading when markets calmed a day after speculation over a potential release of strategic oil reserves had roiled energy markets, oil futures followed the euro and equity markets higher in the afternoon. The euro moved broadly higher against the dollar as U.S. inflation data showed the consumer price index rose 0.4% in February, below the 0.5% increase economists had forecast. Solid supports at 1,021.25 dollars for the gasoil, 122.55 dollars for the brent and 105.20 dollars for the WTI accelerated oil's rally. Several resistance lines were breached in the process until strong key resistance lines at ICE and NYMEX stopped the rise, and oil futures settled close to their highs.

ICE Gasoil contract for April delivery settled at at 1,035.75 dollars on Friday. This was 11.75 dollars above Thursday's settlement. With some 58,600 contracts the traded volume was on average.

When the two lines of the Stochastic indicator at ICE and NYMEX crossed, a bullish signal was triggered. While the WTI crude breached the upper limit of the medium-term trendchannel, ICE futures have not yet succeeded in exceeding key resistance levels (126.25 dollars for the brent, 1,045.00 dollars for the gasoil). Above these levels a string of technical buying orders will be triggered.

U.S.

Nymex acces easing. Oil futures hardly changed in Asian trading hours and on Globex electronic trading platform this morning, taking their breath after Friday's late rally. The traded volume is above average. In the absence of important economic indicators investors will eye forex markets and equities today.

Houston (ex-wharf indications 16-3)

380cst $732
180cst $767
MGO $1063

Very tight avails for 180 cst

New Orleans (ex-wharf indications 16-3)

380cst $735
180cst $770
MGO $1066

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

Crude is slowing, losing with WTI +$1.23 Singapore paper is easing as well with +$5.60 for 180cst and +$5.50 for 380cst for Apr, and for May 180 cst +$5.60 and 380cst +$5.50 with MGO contracts Apr +$1.38 and May +$1.38. The cargo market is in line with crude and paper 180cst +$0.85, 380cst +$0.32 and MGO -$0.06.

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 $739
180 cst $752
MGO $1010

Fujairah (delivered indications 19-3)

380cst $742
180cst $764
MGO $1049

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets bounced up on Friday on bolstering crude values, lsfo shortages and continious loading congestion in Rotterdam. BP said this morning, there had been a fire at its Rotterdam refinery earlier on Monday and the fire had been put out. BP stated there had been a small fire at one of the units, which started a bit after midnight, but had been extinguished .

Rotterdam

Indications for delivered bunkers:

380cst : $ 716
(1.0 %) :$ 765
180cst: $ 738
(1.0 %):$ 779
MGO 0.1%S: $1035