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After having consolidated in the early morning, oil futures have gained ground around midday. They have been supported by the recovering euro and the improving sentiment at European stock exchanges. Prices have also been bolstered by the doubts regarding the resumed negotiations with the Iran, and Israel's comments that negotiations may also fail. Investors will also eye the statistics regarding the US labor market and the DOE's data on oil inventories this afternoon.

Oil futures showed a downward tendency on Tuesday morning but were unable to breach their first supports on the long run. The disappointing figures regarding the euro zone's economic growth in the fourth quarter of 2011 (-0.3%)and the still pending negotiations between Greece and its private creditors considerably weighed on sentiment on the financial market. The euro and equities saw some profit taking which eventually also impacted oil prices in London and New York. In the course of the afternoon, a series of supports were breached, increasing technical selling pressure after the stochastic indicator had already given market players a selling signal in the morning. As the Iran said it was ready to resume negotiations regarding its nuclear program and to allow the IAEA's inspectors limited access to the disputed installation Parchin, had a slightly bearish effect on oil futures, as did the EIA's monthly report. Only near the ICE G.Oil's support at 1,000.00 dollars did prices consolidate in the evening, whith the Brent and the WTI crude partly seeing losses of more than 2% on the day.

ICE Gasoil contract for March delivery settled at at 1,006.00 dollars on Tuesday. This was 8.75 dollars below Monday's settlement. With some 50,300 contracts the traded volume was only slightly below average.

After the stochastic indicator's selling signal yesterday morning the indicator remains bearish at ICE and NYMEX charts this morning. Mid-term supports have been breached and so technical analysts stick to their slightly bearish assessment on the short run. However, they see some downward potential before quotations form a bottom and may climb again. After the risk premium against the backdrop of the Iran conflict seems fully priced in by now, analysts expect the market to remain volatile, especially as to fluctuations in forex trading and economic data are concerned.

U.S.

Nymex acces gaining. Oil futures traded sideways in Asian trading hours and on Globex electronic trading platform this morning, hardly changed compared to yesterday's settlement prices. The traded volume is on average. Market players today eye the developments at European stock markets, new impulsions from forex trade and economic data. Moreover, they look ahead to the DOE's data on US oil inventories, to be published at 4.30 pm.
API's: Crude oil +4.6; distillates +0.9; gasoline -2.3 million barrels vs previous week. Refinery utilization -0.2%
DOE's; due out tonight
Forecasts: Crude oil +0.8; distillates -1.7; gasoline -1.5 million barrels vs previous week

Houston (ex-wharf indications 6-3)

380cst $717
180cst $758
MGO $1052

Very tight avails for 180 cst

New Orleans (ex-wharf indications 6-3)

380cst $719
180cst $761
MGO $1055

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

Crude is gaining bearish momentum with WTI -$1.36 Singapore paper is adopting the bearish sentiment with -$6.50 for 180cst and -$6.75 for 380cst for Mar, and for Apr 180 cst -$4.50 and 380cst -$5.30 with MGO contracts Mar -$0.70 and Apr -$0.72. The cargo market is tracking the lagging with 180cst +$3.26, 380cst +$1.90 and MGO +$1.32.

The Singapore fuel oil markets rose only more than $2.0 during the morning yesterday. Bunker demand remains weak dampened by market fundamentals. The delivered bunker premiums slipped to around $2.25 above cargo prices yesterday. Bunker fuel oil swaps lost up to $5/mt at the front and only app.$1/mt at the backend of the forward curve. This morning markets are trading up.

High premiums for prompt deliveries.

380 cst $730
180 cst $741
MGO $1000

ARA (Amsterdam - Rotterdam - Antwerp)

The ARA started the week on a bearish note, but the current shortage of lsfo is continuing at least until mid this week. Most suppliers will not offer on prompt supplies.

Rotterdam

Indications for delivered bunkers:

380cst : $ 706
(1.0 %) :$ 759
180cst: $ 730
(1.0 %):$ 774
MGO 0.1%S: $1005