IPE Brent regains ground after Wednesday's sharp sell-off

London (Platts)--18Aug2005

Front-month October IPE Brent crude futures on London's International
Petroleum Exchange gained Thursday, following Wednesday's options-led free
fall of over $3/bbl. 

At 0942 GMT, October IPE Brent was pegged at $62.95/bbl, up 39cts from
Wednesday's close. The US Department of Energy's inventory report showed
neutral to mildly bullish data, which initiated gains in crude prices, but US
funds then pushed prices lower when options kicked in, traders said. This led
the large sell off and the steep fall in prices. "Yesterday's large falls have
probably taken the confidence out of the market after funds sold in the US
yesterday sparking options. It's expected to be calm for the next few days, as
long as there's no fresh major news, but if it does dip off a dollar or so
buying interest should increase," traders said. Support is expected after news
of a brief fire at the Venezuelan Amuay refinery Wednesday evening. Production
has been reduced from 410,000b/d to 150,000 b/d at the massive Paraguana
complex, one of the world's largest refining installations.

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