---

Oil futures were somewhat higher in London trading Wednesday, but gaining only scant support from large draws on U.S. stockpiles and residual tension in North Africa. Brent crude for February delivery was up 17 cents, or 0.2%, at $107.52 a barrel on ICE Futures Europe. U.S. crude-oil futures were up 8 cents at $93.74 a barrel on the New York Mercantile Exchange.

Oil futures didn't show a clear direction on Tuesday morning as market participants were waiting for news regarding Iraq, Libya and South Sudan. Until now, the fights in Iraq and South Sudan are only potentially bullish, for there haven't been any production or export losses so far. At NYMEX, the cold snap in the USA slowly showed some effects as several pipelines have frozen and refineries and installations for oil production have been shut down. Consequently, US futures showed a slightly stronger tendency. Still, against the backdrop of the remaining geopolitical insecurity and the due data on US oil inventories, market players preferred to stay on the sidelines. Therefore, oil futures have but moderately changed on Tuesday. Later in the evening, after our submission deadline, the EIA released its monthly energy report. Initially, the EIA's figures slightly supported oil prices, even though it was rather balanced and should be considered as neutral. Also on Tuesday evening, the embarkment program for North Sea crude oil and the API's data on US oil inventories was released. The latter slightly bolstered the WTI contract but rather weigh.

ICE Gasoil contract for January delivery settled at 910.50 USD on Tuesday. This was +0.25 USD above Monday's settlement. With some 34,300 deals (for this month's contract) the traded volume was below average.

The lines of the stochastic indicator have already crossed giving a buying signal. The RSI still moves below 30%, however, only becoming bullish when it surpasses this marker. The buying signal of the stochastic indicator points to some technical momentum which might make oil futures test yesterday's highs. If prices rise above these levels, numerous technical buying orders (stop-loss orders) are likely to be triggered so the technical constellation would become even more bullish. Until then, we assess the technical situation as neutral to bullish, however.

U.S.

Nymex gaining: Given the mixed cues provided by the API's report last night, oil futures hardly changed in Asian trading this morning. The traded volume at NYMEX is below average for this time of day. Market players are now eying the opening of stock markets waiting also for new cues from forex markets as well as from today's economic indicator. They will also keep an eye on the DOE's data on US oil inventories due this afternoon at 4.30 p.m. and on news from Libya and Iraq.

Survey: Crude oil -3.4; distillates +2.0; gasoline +2.5 million barrels vs previous week.
API: Crude oil -7.3; distillates +5.2; gasoline +5.6 million barrels vs previous week.
DOE: due out tonight.

Houston (ex-wharf indications 08-1)
380cst $590
180cst $668
MGO $987

New Orleans (ex-wharf indications 08-1)
380cst $610
180cst $656
MGO $1001

Singapore

WTI is neutral +$0.13. Singapore paper is loosing with -$1.70 for 180cst and -$1.50 for 380cst for Jan, and for Feb 180 cst -$2.00 and 380cst -$1.85 with MGO contracts Jan -$0.02 and Feb -$0.10. The cargo market is bullish with 180 cst +$1.07, 380cst +$0.33 and MGO +$0.43.

The Singapore fuel oil markets managed a slight increase of app.$1/mt during the Asian Platts window yesterday. Market is expected to tighten with fewer incoming cargoes from the West. The delivered bunker premiums were seen at app. $6.5 above cargo prices yesterday. This morning markets are trading slightly higher.

380cst $598
180cst $606
MGO $905

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $567
(1.0 %) : $598
180cst: $597
MGO 0.1%S: $ 890