NYMEX crude opens 56 cents higher, unwinding oversold conditions

New York (Platts)--15Jun2006

July crude futures on the New York Mercantile Exchange opened 56 cents
higher at $69.70/barrel Thursday, recovering from oversold conditions.

Having formed a double bottom on the charts Wednesday, the crude market
extended gains in overnight trading. The move was also part of a larger
rebound across the commodity complex with the US dollar easing despite recent
economic indicators showing inflation-creep.

"The petroleum complex pushed back to the upside on a round of further
bargain hunting after the markets withstood a test of key intermediate to
longer-term support on Wednesday," Tim Evans, energy analyst at CitiGroup,
said in a report. "From a technical angle, we think the height of the bounce
off these major prior supports will serve as a measure of strength (or
weakness) of the larger trend."

July unleaded gasoline opened 1.41 cents higher at $2.05/gal, shrugging
off the larger-than-expected 2.8 million barrel build in inventories reported
by the Energy Information Administration Wednesday. July heating oil opened
1.41 cents higher at $1.95/gal.

--Linda Rafield, linda_rafield@platts.com

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