London (Platts)--27Nov2007

Global crude futures weakened significantly Tuesday as trading patterns
dragged the complex down, extending Monday's sell off, market sources said.

     At 10:23 GMT, the January ICE Brent futures contract was down 91
cents/barrel to $94.44/b, while the January WTI NYMEX futures contract was
down $1.07/b.

     "Each time it looked like it would go for $100/b [on WTI], it was just
sold into," said a London-based trader. "It is very hard to tell what will
happen in the $98-$99/b range. It is just being slapped around." 

     The front month NYMEX WTI contract has breached the $98/b level five
times since November 8 and twice moved past $99/b in the last week, but has
yet to hit $100/b.

     Market participants said that the latest sell off was driven just by
trading strategies rather than in response to any change in fundamentals or
new headlines.

     "Key trends haven't changed," said Kevin Norrish at Barclays Capital.
"Inventory levels have fallen and will be tight going into Q1 next year." 

     On products markets, the December NYMEX gasoline and heating oil
contracts changed hands at $2.4240/gal and $2.6902/gal, respectively, down
$1.74/gal and $1.64/gal. The December ICE gasoil contract traded at $846/mt,
down $4.50/mt.

--Paul Hailey, paul_hailey@platts.com