IPE Brent extends fall on bearish US gasoil, gasoline data

IPE Brent extends fall on bearish US gasoil, gasoline data

London (Platts)--4May2006

IPE Brent crude futures in London extended losses in early trading
Thursday after unexpected builds in US gasoline and gasoil stocks pushed
prices lower Wednesday.

Front-month May gasoil futures fell from a high on Wednesday morning of
nearly $650.00/mt to a low in trading today of $624.75/mt. Gasoline fell
nearly 9 cents on Wednesday settling at $2.08/gallon.

Front-month June Brent crude futures were trading 19 cents lower at
$72.46/barrel at 1045 London time, (0945 GMT), testing the $72/barrel range
that many traders believe represents a significant support level.

"Today the market is being pulled back by weak gasoline prices and weak
gasoil, which has fallen by about $25, and we are really testing support
levels for crude," said one broker. "However there hasn't really been any
fresh news to affect the market drastically and bullish fundamentals have not
changed."

On Wednesday, IPE Brent crude futures fell after the US Department of
Energy released its latest stock report showing an unexpected build in
gasoline and crude oil inventories.

The US Department of Energy announced a 1.7 million barrel increase in US
commercial crude stocks and a 2.1 million barrel rise in gasoline stocks for
the week ended April 28. Refinery utilization rates continued to climb in the
aftermath of a heavy US maintenance season with rates jumping 0.6% to 88.8%.
In other news, Iranian Foreign Minister Manouchehr Mottaki insisted on
Thursday that developing nuclear energy is Iran's "essential right" and hopes
the UN Security Council will not politicize this.

"The member states of the NPT should enjoy... their right, which is
peaceful nuclear technology. We are insisting on that," Mottaki said,
referring to the nuclear Non-Proliferation Treaty.

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