London (Platts)--12Jun2007

Global crude futures were rangebound Tuesday, ignoring the latest
International Energy Agency report which raised its estimates of world oil
demand in 2006 and 2007 as well as increasing its forecast for the expected
'call' on OPEC crude this year.

     A glut of news in the past few trading days and mainly technical moves
have also made market players remain on the sidelines, brokers said.

      At 1000 GMT, July ICE Brent traded at $69.40/barrel, down 16 cents. The
July WTI futures contracts on both NYMEX and ICE were slightly higher, up 4
cents at $66.01/b.

     "It's very quiet out there today, very sleepy. The IEA report has had no
effect," a London-based broker said.

     The IEA raised its estimates of world oil demand in 2006 and 2007 on the
back of revised historical data from a number of non-OECD countries.

     The oil demand estimate for 2007 was increased by 420,000 b/d to 86.13
million b/d, the IEA said in its latest monthly oil market report.

     This leaves expected year-on-year demand growth of 1.66 million b/d, or
2%, up from an estimated 780,000 b/d, or 0.9%, in 2006.

     From this and with only minor adjustments made to the IEA's non-OPEC oil
supply figures, the Paris-based agency increased its forecast for the expected
'call' on OPEC crude this year.

     The call on OPEC is now expected to average 31 million b/d in 2007, up
from 29 million b/d in 2006 and almost 1 million b/d more than the IEA's
estimate of the cartel's actual production in May of 30.07 million b/d.

     Crude futures in the Middle East were lower. The August DME Oman futures
contract traded at $65.52/b, down 16 cents, whilst the August ICE Dubai
futures contract was 20 cents lower at $64.97/b.

     Within the product futures, June ICE gasoil futures rose, catching up
with the rally late Monday, and was trading at $604.75/mt, up $5.75/mt. The
contract expires at midday London time. On NYMEX, July heating oil traded at
$1.9310/gallon, up 19 points, while July RBOB traded 66 points higher at
$2.1579/gal.

--Jean-Luc Amos, jean-luc_amos@platts.com