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Oil prices trade sideways during the morning, without any clear impulses, awaiting input from the US stock reports later this afternoon. The increasing tensions over Iran and the Western sanctions seem to prevent any downward pressure on Brent.

Monday morning, oil futures traded slightly lower but they edged higher around noon. Positive German economic data supported quotations, whereas the strong dollar limited gains. At ICE the Brent and Gasoil breached first resistance lines. In the course of the afternoon, oil futures received more impetus from forex trade. After a speech by the president of the US Fed, Ben Bernanke, the dollar sharply declined prompting investors to increase their long positions at ICE and NYMEX. Bernanke indicated that despite of the positive unemployment statistics the US economy had not yet fully recovered and still needed supportive measures before there was a substantial improvement. US economic indicators also came out disappointing. This made the dollar lose more ground until late trade supporting oil futures in London and New York. Reports regarding the evacuation of a platform at Total's Elgin field in the North Sea has also had a bullish effect on prices making the spread between the Brent and the WTI crude rise to 18.60 dollars.

ICE Gasoil contract for April delivery settled at at 1,030.00 dollars on Monday. This was 1.00 dollar above Friday's settlement. With some 38,400 contracts the traded volume was below average.

The lines of the stochastic indicator at ICE and NYMEX have crossed this morning and can therefore be seen as bullish, see also technical analysis. Analysts however highlight the technical range which has shown throughout the last few weeks and limits the upward potential. Oil prices are on a very high level currently. According to experts, any further price increases may harm economic growth, which is why traders have lately placed selling orders time and again at 1,045.00 dollars for the G.Oil, at 127.05 for the Brent and at 108.70 dollars for the WTI to be able to take some profit. Technical analysts therefore expect the upward potential to be limited today despite of the bullish stochastic. They expect prices to continue consolidating on a high level in their given range ahead of the DOE's data that will be published tomorrow.

U.S.

Nymex acces losing. Oil futures have shown a softer tendency in Asian trading hours and on Globex electronic trading platform this morning. According to market participants, there has been some profit taking after yesterday's upward movement. The traded volume is far below average. Market players eye European stock markets, forex trade, today's economic indicators and the API's forecast of US oil inventories.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Thursday at 17:00(DOE)
Crude oil +2.3; distillates -0.3; gasoline -0.7 million barrels vs previous week

Houston (ex-wharf indications 26-3)

380cst $725
180cst $760
MGO $1058

Very tight avails for 180 cst

New Orleans (ex-wharf indications 26-3)

380cst $728
180cst $763
MGO $1062

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

Crude is firming with WTI +$0.68 Singapore paper is reacting with +$5.75 for 180cst and +$5.50 for 380cst for Apr, and for May 180 cst +$5.75 and 380cst +$5.50 with MGO contracts Apr +$0.70 and May +$0.72. The cargo market is starting to react to crude and paper with 180cst +$2.68, 380cst +$3.27 and MGO +$1.02.

The Singapore fuel oil markets were up ranging around $2.50- 3.25 yesterday morning, tracking the weaker crude. Forward market fundamentals look more rebalanced improving on less incoming for the coming month. The delivered bunker premiums were seen around $3.25 above cargo prices. Markets are trading higher this morning.

High premiums for prompt deliveries.

380 cst $735
180 cst $746
MGO $1020

ARA (Amsterdam - Rotterdam - Antwerp)

Starting the week on a bullish note, the ARA markets firm on higher crude and barging rates. The Lsfo shortages are easing, with more product becoming available. A contango structure is seen for April-May in Rotterdam, suggesting increasing prices.

Rotterdam

Indications for delivered bunkers:

380cst : $ 708
(1.0 %) :$ 768
180cst: $ 732
(1.0 %):$ 785
MGO 0.1%S: $1018