What's Moving the Oil Markets?

•Global crude futures lost further ground in European morning trading on Tuesday, continuing to edge down and extend losses seen on Monday. Market sources pointed to a strengthening US dollar--combined with selling-sprees by funds--as the main bearish factor for the petroleum futures complex.

•At 11:16 London time (10:16 GMT) on Tuesday, Nov ICE Brent was down 46 cents to $76.12/barrel, coming very close to $76/b, which will be an interesting support level to be tested, brokers said. Nov NYMEX WTI fell below $79/b, decreasing 34 cents to $78.68/b.

• According to brokers and traders, the sentiment behind yesterday's selloff continued into Tuesday, with little new buying incentives seen. "After yesterday's selloff the sentiment remains the same. Support levels are being tested all the time. I hear there is a fund selling out, but those rumors always persist. Fundamentally there is little comment to make at present, nothing new emerged," a London-based broker said.

•Without any major hurricane-caused disruption on oil and gas production facilities this year and with shut-in production coming back onstream, further downward pressure on prices from the upstream sector is likely to emerge.

Updated: October 9, 2007