ICE Brent futures slide back towards $60 as rally losses steam

ICE Brent futures slide back towards $60 as rally losses steam

London (Platts)--26Sep2006

ICE Brent futures fell on Tuesday after BP said that it had restarted
output of 100,000 b/d from the eastern side of Prudhoe Bay over the weekend,
easing market concerns over crude supply.
The news put a lid on the recovery in Brent seen late Monday after NYMEX
opened. But a broker said crude traders remain unsure as to whether Brent
futures had bounced off a bottom or whether the NYMEX unleaded futures rally
in the US had pulled it upwards.
At 1105 London time (1005 GMT) November Brent traded at $60.22/barrel,
shaving 58 cents from Monday's close. The ICE WTI November contract was down
46 cents to $60.99/barrel.
"The recovery yesterday wasn't really caused by anything just as today
we're seeing selling and funds are getting short for nothing and I can't
imaging it's only off the back of BP's news," said one broker. "This market
should bounce but I'm not rushing in yet and I still think that we'll see
Brent below $60 again soon," he added.
On Monday, November Brent traded in a wide $2.33 range. It fell to an
intra-day low of $59.32/barrel at 0945 London time, down $1.09 from
Friday's settle before recovering in the afternoon once NYMEX began trading.
The front month rose to an intra-day high of $61.65/barrel at 6:27 pm, up
$1.24/barrel, before finally closing 39 cents stronger at $60.80/barrel.
A recovery in the NYMEX unleaded gasoline contract on Monday saw the
October contract rise to an intra-day high of $1.5325/gallon, a 6.13 cents
increase from Friday, a rise which galvanized crude futures, traders said. But
the rally lost some steam and October closed at $1.5001/gallon.

BP ANNOUNCES RESTART OF 100,000 B/D RESTART OF EAST PRUDHOE BAY FIELD
The resumption of production from the eastern side of BP's Prudhoe Bay
oilfield in Alaska was the main reason cited for Tuesday's price fall. A BP
spokesman said Monday that output on that part of the Alaska North Slope field
had reached 100,000 b/d. This boosted total output at Prudhoe Bay to about
350,000 b/d of its 450,000 b/d capacity.
Prior to a shutdown in early August due to the discovery of pipeline
corrosion, the eastern operating area was running at 200,000 b/d. The August
shutdown had helped propel oil prices to a record when Brent traded at an
all-time high of $78.65/barrel on August 8.

For similar stories, take a trial to Platts Oilgram Price Report at
http://www.platts.com/Request%20More%20Information/

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.