What's Moving the Oil Markets?

•Crude prices continued their downward trend on Monday, extending a sell-off which started on Friday, amid a lack of fresh bullish news combined with weaker technicals trading.

•At 11:12 GMT, April ICE Brent futures were seen at $61.02/barrel, down $1.05. April ICE Brent prices skyrocketed last week on bullish US product inventory data and increased tensions surrounding Iran, hitting this year's high at $62.49/barrel on March 1.

•"I think the losses are a follow through from Friday night, it looks like a bit of liquidation and correction across the commodity board is taking place, with crude catching up with metals," a London-based broker said. "However, despite technicals not looking particularly strong, they should still keep ICE Brent prices above $60/barrel, with all eyes on gasoline," the broker added.

•Meanwhile, Iran's OPEC governor, Hossein Kazempour Aredebili, was quoted Monday as saying that market fundamentals do not require OPEC to cut production when it meets in Vienna in March and suggesting that the current production level of 26.3 million b/d be maintained, adding additional pressure on prices.

Updated: 03/05/07