•Global crude futures weakened further Tuesday, continuing to retreat from last week's all-time highs as traders liquidated hurricane premiums after the storm threat in the US Gulf receded and shut-in production there started to come back online. "The softening is due to light liquidation of precautionary positions taken out late last week as fears that there could be storm damage to US Gulf oil facilities over the weekend proved unfounded," Barclays Capital wrote in a report.

•The prompt backwardation of the WTI curve continued to come under pressure as the Brent curve for the front three months is now in contango. "The backwardation on crude oil is starting to be under pressure," Petromatrix analysts wrote in a report. "The continuation of Iraqi crude oil exports from the northern route, despite a pipeline attack last week, and weakening physical premiums are making for a widening of the prompt contango on Brent."

Updated: September 25, 2007