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Oil prices fell this morning as the US dollar strengthened and concerns about a supply disruption eased after reports that Iranian and Western leaders will meet for negotiations next month. The bearish API figures have let to profittaking, and most traders anticipate similar numbers from the DOE later today.

Given the slightly bullish technical constellation, oil futures at ICE and NYMEX tested their upward potential in the early morning. However, they did not sustainably breach resistance lines at 1,032.75 dollars for the Gasoil and 125.90 dollars for the Brent. Without any new impulsions from forex trade, investors took some profit in the early afternoon. Shortly afterwards, ahead of US economic data, oil futures tested their upward potential. The Brent and the WTI crude breached first resistances but worse than expected economic data, the Feds warning of too high oil prices and the rebound from the G.Oil's resistance caused some profit taking in the course of the evening. The traded volume remained far below average, as investors currently avoid larger risk positions and only consolidate their actual risk positions.

ICE Gasoil contract for April delivery settled at at 1,025.75 dollars on Tuesday. This was 4.25 dollars below Monday's settlement. With some 42,800 contracts the traded volume was below average.

The stochastic indicator is still slightly bearish for the WTI and the Gasoil this morning, whereas it is already seen as neutral for the Brent. Technical analysts thus tend to take a neutral stance expecting oil prices to continue consolidating on a high level. In a thin trade, markets currently wait for new fundamental impulsions to give some direction. Thus technical factors are eclipsed, with mid-term resistances and supports still defining the range.

U.S.

Nymex acces losing. Oil futures have traded lower in Asian trading hours and on Globex electronic trading platform this morning, reacting to profit taking at US stock markets late yesterday evening, as well as on the basically bearish US oil inventories according to the API. The traded volume is far below average. Investors eye European stock markets, forex trade, today's economic indicators and the DOE's oil inventories data.

API's: Crude oil +3.6; distillates -1.4; gasoline +1.3 million barrels vs previous week. Refinery utilization +1.9%
DOE's; due out tonight
Forecasts: 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 turning bearish with WTI -$0.46 Singapore paper is reacting with -$5.75 for 180cst and -$5.75 for 380cst for Apr, and for May 180 cst -$5.75 and 380cst -$5.75 with MGO contracts Apr -$1.05 and May -$1.11. The cargo market is starting to react to crude and paper with 180cst +$5.78, 380cst +$5.22 and MGO +$0.78.

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 $734
180 cst $746
MGO $1015

ARA (Amsterdam - Rotterdam - Antwerp)

Starting the week on a bullish note, the ARA markets firm on higher crude and barging rates. The Far East Asia arbitrage seems to open, and would also udercut the hsfo levels, with loading congestion lurking. 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 : $ 709
(1.0 %) :$ 767
180cst: $ 733
(1.0 %):$ 785
MGO 0.1%S: $1015