•IPE Brent crude futures in London fell Monday on news that Iranian President Mahmoud Ahmadinejad has sent a letter to US President George W. Bush to "propose new ways" to resolve tensions over the country's nuclear ambitions.

•All of the bullish fundamentals that have kept the price of crude within a $72/barrel and $75/barrel range are still there such as weak gasoline prices, said one broker.

•Hedge funds have reversed long positions and continue to sell. "We have not hit any fresh lows from last week in either the June or July Brent contracts and there could well be a bounce later on today but then again many people thought that there would be one at the end of last week," said one broker.

•There remains enough bearish elements to this market to push the price of IPE Brent through the $70/bbl, support level. Dampening of demand for gasoline in the US, Crude inventories remain high despite the shortage of Nigerian crude and refineries are reaching the end of their maintenance season.