---

Technical indicators: neutral to bullish

Oil prices are rising slightly today on a stronger Euro. Investors are eyeing an important resistance line at 92.60 dollars after yesterday's rally. If resistance lines will be breached, more buying orders will be triggered.

Yesterday, prices rallied to their highest price levels in more than two years, stoked by accelerating manufacturing activity in industrialized economies and cold weather, to decline slightly on profit taking at the end of the day.

ICE Gasoil January is expected to open 5.50 to 7.00 dollars down at about 786.50 dollars/ton after settling at 792.75 dollars (official settlement price) Monday night. This was 30.25 dollars above Friday's settlement. Volume with some 20.500 deals below average.

The Stochastic indicator remains bullish and is giving a buying signal this morning, while the RSI is still neutral. When oil prices breach through the 92.60 dollar resistance line, massive technical buyings will be triggered. The first support for the WTI crude is seen at 91.00 dollars today, the first resistance at 92.60 dollars.

U.S.

Nymex Access little changed: Oil prices little changed in Asian trading hours and NYMEX electronic trading this morning, WTI crude lingering below 92.00 dollars. Traders waiting for direction after Monday's hefty rally. No news in the markets. The trades volume is at average.

US natural gas storage volumes according to EIA for the week till December 24th, 2010: -136.00 bcf (billion cubic feet) at 3,232 bcf vs 3,368 bcf the previous week

Houston (ex-wharf indications 3/1)

380 cst $508
180 cst $529
MDO $783

Very tight avails for 180 cst

New Orleans (ex wharf indications 3/1)

380 cst $510
180 cst $531
MDO $786

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

Crude is firming strong with WTI +$2.07. Singapore paper is reflecting it with Jan +$10.70 for 180 cst and +$11.75 for 380 cst, and for Feb 180 cst +$10.25 and 380cst +$11.00 with MGO Jan contracts at +$2.65 and for Jan at +$2.60. The cargo market is still not reacting with 180cst -$4.68, 380cst -$4.60 and MGO -$1.44.

High premiums for prompt deliveries.

380 cst $517
180 cst $527
MDO $799

Fujairah (delivered indications 3-1)

380cst: $525
180cst: $560
MGO: $832

Rotterdam (delivered indications)

Friday, in the MOC 162KT was traded between 482-486 with Totsa, Litasco and petroned the main sellers to a mixed bag of buyers.

6 VLCCs due lifting product in Rotterdam were enough to leave the market tight at the end of the year - with another Suezmax also lifting leaving the market firm. In Hamburg and the Baltic ice is hindering re-supplies particularly of MGO. The market as a whole is quiet in NWE with most owners having fixed their requirements ahead of the New Year. Antwerp though the enquiries are still quite active with the market tight on barge avails.

Indications for delivered bunkers:

380cst: $500
(1.0%): $510
180cst: $515
(1.0%): $531 (very low avails)
MGO 0.1%S: $788