New York (Platts)--24Jul2007

NYMEX September crude futures on the Chicago Mercantile Exchange's Globex
system were 94 cents lower at $73.94/barrel Tuesday, continuing a technical
correction that was precipitated by a glut of long positions and overbought
conditions.

     "This week's trade has generally been devoid of significant news and with
the help of Friday's weak August WTI expiry, the complex has been forced to
move lower in search of fresh buying interest," energy consultant Jim
Ritterbusch said in a report.

     But analysts viewed the underlying fundamentals as supportive regardless
of the two-day sell-off that prevented the crude market from challenging the
all-time high of $78.40/barrel July 2006. 

     Real weakness has been in the product markets, where crack spreads have
undergone a significant contraction based on the view that refiners will
continue to ramp up run rates.

     "While we caution against a possible pull-back in prices given the level
of speculative involvement in the market, tightening fundamentals are likely
to limit the extent of any potential correction," Kevin Norrish, energy
analyst at Barclays Capital, said in a report. 

--Linda Rafield, linda_rafield@platts.com