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Oil futures sharply rose in electronic trading this morning, mainly bolstered by positive Chinese economic indicators send the euro and European equities higher. Furthermore, China's oil demand marked a new record high in December. The bullish technical constellation provided additional momentum after first resistance lines had already been breached at ICE earlier in the morning. Market participants also expect an increasing amount of long positions during the session in New York.

Yesterday, oil futures consolidated in early morning Asian trading, edging modestly higher later in Europe on jitters over potential supply disruptions via the key Strait of Hormuz. But fears over the economic outlook for the euro zone and the consequent impact on Asia and the U.S.following Standard & Poors' downgrade late Friday of nine of the 17 euro zone members kept a lid on prices that shed their gains at middayand stayed within their trading range for most of the day. As floor trade in New York remained closed for Martin Luther King Day, volume was thin and markets lacked direction. A steady euro and rising European equity markets supported the oil complex in Londonand New Yorklater in the day and in East Asia.

ICE Gasoil contract for February delivery settled at 958.75 dollars on Monday. This was 6.25 dollars above Friday's settlement. With some 43,500 contracts the traded volume was below average.

There is still no consensus between European Union members on when to implement the planned embargo on Iranian oil. Most recently Euro zone members said to be prepared to grant a 6-month period to give the governments enough time to look for other supply sources but France urges to implement the ban as soon as possible. Meanwhile investors anticipate the European Union foreign minister's meeting on the 23rd of January when they are expected to come forward with an unanimous decision.

When the Stochastic oscillator's two lines converged, a strong bullish signal was triggered at ICE and NYMEX. The WTI's breach of the crucial mark of 100.00 dollars a barrel has opened up more upside to prices. Technical analysts therefore forecast an increase in oil prices today.

U.S.

Nymex acces gaining. Oil futures are rising in Asian trading hours and on Globex electronic trading platform this morning on a surging euro and an increase in Asian equities. Technical analysts see a string of technically driven buying orders behind oil's rise. The traded volume is clearly above average as traders have returned to the markets after Monday's U.S.holiday.

Houston (ex-wharf indications 16-1)

380cst $662
180cst $698
MGO $1010

Very tight avails for 180 cst

New Orleans (ex-wharf indications 16-1)

380cst $665
180cst $701
MGO $1013

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

Crude is turning bullish again with WTI +$1.19. Singapore paper is reflecting the turn with +$7.10 for 180cst and +$7.00 for 380cst for Feb, and for Mar 180 cst +$7.10 and 380cst +$7.00 with MGO Feb contracts +1.00 and for Mar +$1.02. The cargo market is in line with crude and paper, losing slightly with 180cst -$6.68, 380cst -$5.96 and MGO +$0.07.

The Singapore fuel oil markets dropped more than -$6.0 during the morning. Market seems to be tight on lack of on specification bunker grade products. The delivered bunker premiums were assessed around $26.5 above cargo prices. This morning markets are trading higher.

High premiums for prompt deliveries.

380 cst $730
180 cst $743
MGO $968

Fujairah (delivered indications 17-1)

380cst $725
180cst $750
MGO $1050

ARA (Amsterdam - Rotterdam - Antwerp)

The Northwest European bunker values edged higher Monday following stronger sentiment on the oil markets and tighter high sulphur fuel oil supplies in the ARA. The steep backwardation in Rotterdam was prompted by some VLCCs vessels slated to load this month and two more to load in February. Tight avails of HSFO keep prices firm.

Rotterdam

Indications for delivered bunkers:

380cst : $ 685
(1.0 %) :$ 694
180cst: $ 713
(1.0 %):$ 732
MGO 0.1%S: $966