NYMEX crude opened 97 cents higher as US/Iran tensions escalate

New York (Platts)--5Jun2006

July crude futures on the New York Mercantile Exchange opened 97 cents
higher at $73.30/barrel Monday as geopolitics moved back to the forefront of
oil market concerns. Tensions between Iran and the US escalated with Iran's
supreme leader, Ayatollah Khamenei, warning of possible supply disruptions
should the US attack.

"While this didn't represent fresh news to the market, it did underscore
the crude market's heightened sensitivity to geopolitical developments within
a bullish technical environment and amidst increasing gasoline supply
concerns," independent energy analyst Jim Ritterbusch said in a report.
Ritterbusch said the crude market was increasingly reliant upon strength in
the gasoline market rather than headlines emanating from Iran to maintain
upward momentum.

July unleaded gasoline opened 2.25 cents higher at $2.22/gal and July
reformulated blendstock for oxygenated blending opened 2.38 cents higher at
$2.38/gal. July heating oil opened 3.55 cents higher at $2.05/gal.

--Linda Rafield, linda_rafield@platts.com

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