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Technical indicators: neutral to bullish

Oil prices rise this afternoon, testing first resistance lines, supported by a weaker dollar and a strong opening of European equity markets. The IEA's comments that there is a clear and urgent need for extra oil supplies on the world market to prevent economic damage to importing countries also push prices up.

Yesterday, Oil prices traded in a narrow range in the morning with a bullish tone, hitting first resistance lines early in the day. Yet market participants were cautious ahead of the DOE data and prices lingered until the opening of the session in New York. After the release of the data that were seen slightly bullish by most analysts, oil prices started rising. Resistance lines were breached across the complex. Rising gasoline demand and the strong decline in Cushing oil stocks help oil futures to new intraday highs. Only in after-hour trading did the rising dollar bring oil prices back after the FED released its minutes.

ICE Gasoil contract for June delivery settled at 914.75 dollars Wednesday night. This was 24.25 dollars below Tuesday's settlement. Volume with some 80,500 deals well above average.

Yesterday, also the Stochastic indicator started giving buying signals and became bullish at all charts after short-term resistance lines were breached. Technical analysts therefore predict rising prices in electronic morning trading and a test of Wednesday's highs. In the medium term however, oil is seen in consolidation with more bearish potential. The first support for the WTI crude is seen at 99.60 dollars, the first resistance at 101.00 dollars. The Brent's first resistance is seen at 113.10 dollars, its first support is at 112.00 dollars.

U.S.

Nymex Access losing. Oil prices traded slightly higher in East Asia and Globex electronic trading this morning, but are currently retreating from their highs in the wake of the recovering US dollar. The traded volume is below average.

APIs: crude oil +2.7; distillates -2.8; gasoline -0.7 million barrels vs previous week. Refinery utilization -0.5%

DOEs: crude oil +/- 0.0; distillates -1.2; gasoline +0.1 million barrels vs previous week. Refinery utilization +1.5%

Forecasts: crude oil +2.7; distillates -2.8; gasoline -0.7 million barrels vs previous week. Refinery utilization -0.5%

Houston (ex-wharf indications 18-5)

380 cst $614
180 cst $649
MDO $948

Very tight avails for 180 cst

New Orleans (ex wharf indications 18-5)

380 cst $616
180 cst $652
MDO $951

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

Crude is bouncing back up, gaining +$1.48 Singapore paper is cautiously tracking crude, gaining with +$2.50 for 180 cst and +$0.45 for 380 cst for Jun, and for Jul 180 cst +$2.80 and 380cst +$1.90 with MGO Jun contracts at +$1.06 and for Jul at +$1.10 The cargo market is slowing, but not yet turning with 180cst -$2.56 380cst -$2.82 and MGO -$0.65.

The Singapore fuel oil fell only app. $2.50 during the Platts window yesterday tracking stronger crude. The buyers have waited in anticipation of lower prices. The bunker delivered premiums remained around $7.00 above cargo prices yesterday. Bunker fuel swaps gained app. $13.00/mt along the curve both in Rotterdam and Singapore. This morning both markets are trading flat.

High premiums for prompt deliveries.

380 cst $636
180 cst $652
MDO $940

Fujairah (delivered indications 17-5)

380cst: $640
180cst: $662
MGO: $1036

Rotterdam

Indications for delivered bunkers:

380cst: $608
(1.0%): $643
180cst: $633
(1.0%): $671 (very low avails)
MGO 0.1%S: $925