IPE Brent futures continue to rally as funds buy on the dip

IPE Brent futures continue to rally as funds buy on the dip

London (Platts)--9Jun2006

IPE Brent crude futures in London clawed back some of the losses
seen since Monday extending Thursday's rally as a number of funds
continue to reverse short positions looking to buy on the dip, brokers said
Friday.
At 1032 GMT front-month July was changing hands 50 cents higher at
$69.55/barrel having extensively probed the $67/barrel level on Thursday.
"It is a busy morning with short covering going into the weekend and we
are seeing the market up alongside a recovery in global equities," said one
broker. "I expect the price of crude to be a lot higher by the end of the day
because it has fallen too far this week and it has fallen too quickly," he
added.
Since Monday, front-month IPE crude values have fallen $4.94 from
$72.66/barrel to a low of $67.73/barrel at around 1630 GMT on Thursday as
bearish fundementals weighed heavily on the market. However prices late
Thursday dropped to a two-week low prompting funds to enter the marke. The
price of front-month Brent crude gained $1.19 over 90 minutes closing at
$69.05/barrel.
Elsewhere, the Group of Eight (G8) finance ministers were meeting in
Saint Petersburg Friday to discuss steering the global economy past multiple
threats of high energy costs, rising interest rates and a weak dollar.

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