NYMEX crude opens 90 cents higher on geopolitical developments

New York (Platts)--18Jul2006

August crude futures on the New York Mercantile Exchange opened 90 cents
higher at $76.20/barrel Tuesday as the conflict between Israel and Hezbollah
raged on. Geopolitical developments continue to underpin prices, sending
global oil markets rocketing in overnight trading.

"Some movement towards diplomacy that spurred most of yesterday's price
sell-off across the complex is now being negated by continued hostilities in
the Middle East that show no signs of abating," energy consultant Jim
Ritterbusch said in a report. "Projecting a political scenario in the Mideast
that could eventually translate to an actual disruption of physical oil supply
naturally focuses on Iran, but possibilities of an oil supply disruption and
the magnitude of such are impossible to predict."

August unleaded gasoline opened 2.47 cents higher at $2.31/gal and August
heating oil opened 2.56 cents higher at $2.0450/gal.

--Linda Rafield, linda_rafield@platts.com

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