---

Oil prices are still easing this morning, trading close to a one-week low as ongoing speculation Western nations were considering the release of supplies from emergency reserves and fears over a slowdown in global demand weighed.

Oil futures at ICE and NYMEX started lower into the day, hitting first support lines before noon as traders took some profit, awaiting DoE data to give markets some bearish signals. The weak dollar/firm euro and strong support lines limited the losses at this time of the day. When the euro dropped vs the dollar in the afternoon and France's government spokeswoman Valerie Pecresse confirmed that the French government was in talks with the IEA to release strategical oil reserves, prices fell through support lines across the complex. The DoE's report gave mixed signals in the evening as the strong build in crude oil and the higher-than-expected decline in distillate stocks counteracted, making oil prices rather volatile in late New York session.

ICE Gasoil contract for April delivery settled at at 1,024.00 dollars on Wednesday. This was 1.75 dollars below Tuesday's settlement. With some 36,800 contracts the traded volume was below average.

OPEC: Iran’s Foreign Minister Ali Akbar Salehi stated Yesterday that renewed nuclear talks between Iran and six world powers are expected to take place on April 13. A venue for the talks will be finalized in the coming days.

The Stochastic indicator is bearish this morning at all charts after its lines crossed yesterday, giving markets a selling signal, see also technical analysis. Medium-term support lines not having yet been hit, technical analysts see only little downside for the time being. Only below 123.20 dollar support for the brent, 1,015.75 dollar support for the gasoil and 104.25 dollars for the WTI will there be fresh technical selling. Without any fresh fundamentals to give traders direction, the traded volume will stay low and prices will continue to consolidate on their current level.

U.S.

Nymex acces gaining. Oil futures are trading marginally higher in Europe and on Globex electronic trading platform this morning, market participants being cautious in view of a possible release of strategical oil reserves. The traded volume is far below average, as it was in the past few days. Investors eye forex trade and a string of economic indicators today.

API's: Crude oil +3.6; distillates -1.4; gasoline +1.3 million barrels vs previous week. Refinery utilization +1.9%
DOE's; Crude oil +7.1; distillates -0.7; gasoline -3.5 million barrels vs previous week. Refinery utilization +2.3%
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 dropping with WTI -$1.11 Singapore paper is mixed with +$0.25 for 180cst and -$0.05 for 380cst for Apr, and for May 180 cst +$0.25 and 380cst -$0.40 with MGO contracts Apr +$0.09 and May +$0.09. The cargo market is bearish with 180cst -$5.93, 380cst -$5.97 and MGO +$0.98.

The Singapore fuel oil markets fell app. $6.0 during the morning yesterday, tracking weaker crude. The delivered bunker premiums strengthened slightly, seen app. $3.5 above cargo prices yesterday as the weaker prices attracted demand for bunkers. This morning markets are trading up.

High premiums for prompt deliveries.

380 cst $734
180 cst $746
MGO $1015

Fujairah (delivered indications 29-3)

380cst $741
180cst $764
MGO $1050

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 : $ 706
(1.0 %) :$ 763
180cst: $ 731
(1.0 %):$ 784
MGO 0.1%S: $1017