Crude firmly breaks $60/bbl mark in Asia Monday

Singapore (Platts)--27Jun2005

Crude futures continued to move higher with conviction on Access in Asia
Monday, despite a lack of new fundamental developments. Light, sweet West
Texas Intermediate crude futures for August delivery were trading at
$60.27/bbl, up 43 cts/bbl at 0611 GMT from their Friday's record high settle
at $59.84/bbl on the New York Mercantile Exchange. 

The contract traded to a record high $60.47/bbl earlier in the session before
falling back. Technicians noted relatively weak volume behind a 42 cts/bbl
gains on Friday. "There is not really much volume behind the advance and this
leaves it vulnerable to contradiction," Tim Evans, energy analyst at IFR
Energy Services, said in a report. New highs on low volume are considered
indicative of a technically weak market characterized by exhausted buyers.
Brent joined the advance on the International Petroleum Exchange, with the
benchmark August contract last at $58.83/bbl, up 47 cts/bbl at 0613 GMT from
their $58.36/bbl Friday settle.

Products futures joined the advance Monday, after traders and funds had sold
heating oil and unleaded gasoline lower on Friday. Front-month July heating
oil was last done at $1.6725/gal, up some 2.21 cts/gal from its low
$1.6504/gal settle on NYMEX Friday. Heating Oil had led products lower Friday
despite crude's advance, due to committed selling from traders, and fund
selling that came in late in the US day. Heating oil traded to as low as
$1.6450/gal or down 3.06 cts/gal covered long positions in the face of the
weakness. There had been no news to cause the sell-off in heating oil Friday.
Benchmark July unleaded gasoline futures were also up, last trading at
$1.6715/gal, up 1.58 cts/gal at 0456 GMT. The advance more than offset a 10
point decline on NYMEX Friday. Refiners were selling the front spread in both
heating oil and gasoline, traders said, contributing to weakness in the
benchmark contracts.

This story was first published in Platts real-time news and market reporting
service Global Alert - http://www.globalalert.platts.com

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