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Oil prices edged lower during morning trade. The Brent particularly marked significant losses after it had remained relatively stable compared to the Gasoil and the WTI crude in the past few days. Meanwhile it has tested its first support. Market participants say that profit taking has been caused by the unexpected surplus of China's trade balance. The surplus amounted to 5.35 billion dollars as demand and imports had retreated. However, analysts expected the trade balance to show a deficit of 3.2 billion dollars. After some disappointing economic indicators in the past few weeks, fears increased that China's demand for fuels may drop significantly, too, after demand from Western states had already declined.

After ICE and NYMEX remained closed on Good Friday, trade continued as usual at Easter Monday. Quotations remained on Thursday's level until noon but showed a downward tendency. As most European countries had a holiday on Monday, trade only took up pace in the afternoon, after the opening of NYMEX floor trade. The repercussions of Friday's US employment statistics and the planned talks with Iran over its nuclear program caused some profit taking in the course of the afternoon. Moreover, the OPEC's current president emphasised that the cartel would do its best to keep supply and offer at oil markets balanced. After oil futures breached first supports at 1,000.00 dollars for the G.Oil and at 121.40 dollars for the Brent, technical selling pressure rose. Only around 121.00 dollars Brent and 101.75 dollars WTI crude (a 2-month low) a bottom formed and so quotations saw a correction up during late trade on Monday. The dollar that was stronger at that time also supported prices.

ICE Gasoil contract for April delivery settled at at 993.25 dollars on Monday. This was -13.75 dollars below Thursday's settlement. With some 16,100 contracts the traded volume was far below average. Technical indicators do not provide any new impulsions this morning and are therefore seen as neutral. After the long weekend investors resume trading whereas the volume is expected to be low today. Monday's losses indicated that there is some downward potential, however. Market participants will wait for new fundamental impulsions. US oil inventories are likely to give some bearish impulsions. Decisive technical selling impulsions are only expected if oil prices fall below yesterday's lows.

U.S.

Nymex acces easing. Oil futures have edged lower on Globex electronic trading platform this morning. The losses in Asian trading and the US oil inventories data that are expected to be bearish are to have prompted some profit taking. The traded volume is only slightly below average. Market participants are eyeing equity and forex markets and the few economic indicators today.

Survey of US Petroleum inventories due out tonight at 22:30(API) and Wednesday at 16:30(DOE)

Crude oil +1.7; distillates -0.6; gasoline -0.6 million barrels vs previous week

Houston (ex-wharf indications 10-4)

380cst $714
180cst $748
MGO $1043

Very tight avails for 180 cst

New Orleans (ex-wharf indications 10-4)

380cst $718
180cst $757
MGO $1047

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

Crude is trading modestly up with WTI +$0.28 Singapore paper is slowing but not yet turning with -$0.75 for 180cst and -$0.70 for 380cst for Apr, and for May 180 cst -$0.75 and 380cst -$0.50 with MGO contracts Apr -$0.60 and May -$0.62. The cargo market is more bearish, losing with 180cst -$4.65, 380cst -$5.16 and MGO -$0.91.

The Singapore fuel oil markets fell more than $4.5 Yesterday. The latest Singapore heavy residual inventory saw a draw of -1.4 mbbl to 22.09 mbbl. The delivered bunker premiums were higher at around $4.25 above cargo prices yesterday which slipped slightly on weaker crude after the window. This morning markets are trading slightly higher.

High premiums for prompt deliveries.

380 cst $725
180 cst $736
MGO $1005

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA markets turned bullish, mainly on lack of avails and loading congestion. Two fixtures have been reported, which will eat into the avails of hsfo. with loading congestion lurking. The Antwerp avails are still very tight. A contango structure is seen for April-May in Rotterdam, suggesting increasing prices.

Rotterdam

Indications for delivered bunkers:

380cst : $ 692
(1.0 %) :$ 758
180cst: $ 720
(1.0 %):$ 757
MGO 0.1%S: $995