London (Platts)--14May2007

Global crude futures continued last week's uptrend Monday morning as
concern over militant attacks on oil infrastructure in Nigeria added further
support, traders said.
     Prices have "drifted upwards on thin volumes as the market anticipates
further kidnappings and problems affecting supply in Nigeria," a trader said.
     Further to this, early thoughts of the US hurricane season affecting
crude supply and refining as well as low US gasoline stocks all have added to
the bullish sentiment. June ICE Brent futures at 10:13 GMT
      traded at $67.32/barrel, up 49 cents while the June WTI futures contract
on NYMEX was at $62.95/b, up 58 cents.
     In the latest set of events in Nigeria, unidentified gunmen on Monday
snatched a Nigerian working for Italian oil giant Agip in southern Nigeria's
Rivers State where kidnappings have occurred regularly--more than 30 foreign
workers have been kidnapped there this month alone (see story 9:02 GMT).
     Traders also noted that there is a general concern over prospects of a
disruptive US hurricane season, as well as the underlying geopolitical
tensions with Iran still remaining.
     Last Wednesday, Andrea, an early-season subtropical storm, formed off the
Southeast US coast, the National Hurricane Center reported.
     On Monday morning, Iranian President Mahmoud Ahmadinejad warned that Iran
would retaliate with severity to any possible attack by the United States over
Tehran's controversial nuclear program (see story 08:00 GMT).
     "They (the Americans) understand that if they should make this mistake,
the retaliation of the Iranian people will be severe and they will repent," he
told reporters in Abu Dhabi.
     On the product futures prices were generally higher. June ICE gasoil
futures traded at $596.75/mt, up $4.75/mt. The June heating oil contract on
NYMEX changed hands at $1.8937/gallon, up 1.14 cents/gal. Despite supplies
being low in the US, RBOB futures were little moved, up 0.54 cents to
$2.3575/gal. However "once the [NYMEX futures] floor opens I'm sure it will
all change," a trader said.
--Jean-Luc Amos, jean-luc_amos@platts.com