IPE Brent drifts lower, market unfazed by Tropical Storm Alberto

IPE Brent drifts lower, market unfazed by Tropical Storm Alberto

London (Platts)--13Jun2006

IPE Brent crude futures drifted lower in London as the first tropical
storm of the new hurricane season, Alberto, looked unlikely to hit any US Gulf
Coast oil or gas facilities. The sell-off was further exacerbated by a small
cut in the latest oil demand growth forecast by the influential International
Energy Agency.
The front-month July Brent contract was trading at $68.21/bbl, down 72
cents, at 0921 GMT, having traded as low as $68.11/bbl earlier in the day.
Crude futures in London have shed over $2/bbl since the start of the week.
"The market is more techincally driven as opposed to fundamentally
driven," one broker said, anticipating a further sell off later in the day.
In the latest IEA report, global demand growth for 2006 was trimmed to
1.24 million b/d, down from earlier forecasts of 1.25 million b/d. The agency
also cut non-OPEC its oil supply forecast by 55,000 b/d, with the 'call on
OPEC' unchanged for the year.
China's oil demand continued to accelerate upwards with the May imports
up 19% year on year at 2.98 million b/d. According to the latest IEA data,
apparent demand was up 9% year-on-year in April with rising domestic
prices seen as the major driver.
The Chinese government's decision last month to raise gasoline and diesel
prices could boost apparent demand in the near term by encouraging refiners to
supply the domestic market. "In the longer term, however, the increase is
likely to dampen demand growth to some extent," the IEA said.
--Paul Wightman, paul_wightman@platts.com

For more news, request a free 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!!.