NYMEX crude opens 84 cents lower as geopolitical concerns fade

New York (Platts)--3Apr2007

May crude futures on the New York Mercantile Exchange opened 84 cents
lower at $65.10/barrel Tuesday, on increasing expectations that Iran and the
UK can diplomatically resolve the current standoff involving 15 detained
British sailors. A sharp pullback in product prices added to bearish
sentiment.

"Continued refinery hiccups along with a tight inventory situation is
likely to keep gasoline prices well underpinned ahead of the peak summer
demand season," Kevin Norrish, energy analyst at Barclays Capital, cautioned
in a report. "Meanwhile refined products were generally weaker in Europe
yesterday, with gasoil front month losing 0.8%, weighed down by the end of the
17-day strike at France's Fos-Lavera oil hub -- which had threatened the shut
down of up to 1 million b/d of refining capacity."

May RBOB opened 2.28 cents lower at $2.0230/gal and May heating oil
opened 2.05 cents lower at $1.8420/gal.

--Linda Rafield, linda_rafield@platts.com