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In the wake of weaker equities and an advancing dollar, oil futues have lost some ground during morning trade. Saudi Arabia's statements to increase their output, is reassuring the markets. First supports at ICE have been breached.

After having traded in a narrow range early Monday morning, oil futures at ICE and NYMEX slightly retreated during the first part of the European session, even breaching their first short term supports. Market players said, this was due to some profit taking after the price rally on Friday evening and due to equities having marked some losses yesterday. Downward potential was limited, however, as the technical constellation and the fundamentals were slightly bullish. In the afternoon the WTI crude, in particular, was able to regain some ground, exceeding its first resistance. The WTI crude's gains also pushed prices at ICE higher, and so the G.Oil tested its resistance at 1,045.00 dollars marking a new 11-month high, even though the resistance proved strong. Analysts regarded yesterday's afternoon trade as rather lackluster, with investors adjusting their positions before the WTI crude contracts for April delivery are going to expire today. During late trade, oil futures were slightly supported by a retreating dollar but resistances, especially those at ICE, remained intact causing some profit taking in the evening.

ICE Gasoil contract for April delivery settled at at 1,043.50 dollars on Monday. This was +7.75 dollars above Friday's settlement. With some 57,000 contracts the traded volume was on average.

The stochastic indicator remains bullish at ICE and NYMEX this morning but slowly approaches oversold territory, see also technical analysis. Despite of the stochastic indicator, technical analysts take a rather neutral stance today. In the past few days profit taking has frequently kept prices from exceeding their resistance lines by too much. Markets seem unable to breach their long term resistances with new fundamental impulsions lacking, analysts say. After the resistances at ICE remained strong yesterday analysts expect some profit taking today. However, they also say that there was no sign of a correction down on the run.

U.S.

Nymex acces easing. Oil futures slightly retreated in Asian trading hours and on Globex electronic trading platform this morning. After having bounced off their resistance lines at ICE, oil futures saw some profit taking this morning. The traded volume is below average. NYMEX C.Oil contracts for April delivery will expire this evening and so most investors have already turned to the contracts with May delivery. Market players now eye the development at European stock exchanges, further impulsions from forex trading and today's economic indicators. They will also closely watch the API's forecasts regarding US oil inventories data, to be published at 9.30 p.m..

Houston (ex-wharf indications 19-3)

380cst $732
180cst $767
MGO $1063

Very tight avails for 180 cst

New Orleans (ex-wharf indications 19-3)

380cst $735
180cst $770
MGO $1066

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

Crude is turning, gaining with WTI +$0.46 Singapore paper is responding, but not turning yet with -$2.60 for 180cst and -$1.35 for 380cst for Apr, and for May 180 cst -$2.25 and 380cst -$1.40 with MGO contracts Apr -$0.09 and May -$0.09. The cargo market is more bullish with 180cst +$5.20, 380cst +$6.13 and MGO +$1.20.

The Singapore fuel oil markets were up more than $5.0 during the morning at the start of the week. The persistently high prices have dampened market demand. The delivered bunker premiums slipped slightly to around $2.0 above cargo prices. This morning markets are trading down.

High premiums for prompt deliveries.

380 cst $739
180 cst $752
MGO $1010

Fujairah (delivered indications 20-3)

380cst $742
180cst $764
MGO $1049

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets started the week on a bullish note, with continuing lsfo shortages and 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 : $ 707
(1.0 %) :$ 755
180cst: $ 733
(1.0 %):$ 765
MGO 0.1%S: $1026