NYMEX crude opens 85 cents lower, losing gasoline's price prop

New York (Platts)--10Aug2006

September crude futures on the New York Mercantile Exchange opened 85
cents lower at $75.50/barrel Thursday, reeling in the wake of a thwarted
terrorist plot in the UK earlier in the day and losing gasoline's price prop.

"Although the foiled terror attack in Britain has shocked the market into
questioning its demand assumptions, the US gasoline market remains the anchor
that is pulling the rest of the market down," Tim Evans, energy analyst at
CitiGroup, said in a report. "It has consistently rejected bullish news this
week, including Monday's $2.22 gain in crude oil on the Prudhoe Bay shutdown
and the 3.2 million barrel drop in DOE gasoline stocks reported Wednesday."

September unleaded gasoline opened 5.22 cents lower at $2.12/gal and
September heating oil opened 4.13 cents lower at $2.0650/gal. Despite another
week of solid demand growth in the US, a jump in refinery utilization and
consequently, a surge in gasoline output, particularly along the Atlantic
Coast left the downside vulnerable.

--Linda Rafield, linda_rafield@platts.com

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