NYMEX crude opens 64 cents lower, shrugging off bullish news

New York (Platts)--28Jul2006

September crude futures on the New York Mercantile Exchange opened 64
cents lower at $73.90/barrel Friday, shrugging off ongoing bullish events such
as Shell's declaration of force majeure on Nigerian Bonny Light crude exports.

The market has been moving in a $2/barrel range for the past six sessions
and barring any fresh news development does not looked poised to break out.

"The petroleum market is holding within its recent range, but looking a
little tired heading into the weekend and leaning on support," Tim Evans,
energy analyst at CitiGroup, said in a report.

A weak US GDP report for the second quarter reinforced the notion that
higher interest rates may be slowing the economy with implications for lower
petroleum demand. Second quarter GDP growth was reported at 2.5%, down from
5.6% in the first quarter, according to data released Friday by the Bureau of
Economic Analysis.

August unleaded gasoline opened 3.1 cents lower at $2.2650/gal and August
RBOB 3.79 cents lower at $2.3150/gal ahead of Monday's contract expiration.
August heating oil opened 1.46 cents lower at $1.9650/gal.

--Linda Rafield, linda_rafield@platts.com

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