London (Platts)--29Feb2008

Crude futures drifted lower in European morning trading Friday as market
players took profits following further record highs earlier in Asian trading.
Also, a rebound in the US Dollar Index which the crude market has been
tracking closely forced prices to turn lower.
At 11:10 GMT, the April ICE Brent contract was trading 90 cents lower at
exactly $100.00/b while NYMEX WTI was at $101.72/b, down 87 cents.
"This is just a mild selloff to set the stage for another upward move," a
London-based trader said.
In early Asian trading NYMEX WTI crude hit an all-time high of $103.05/b
while ICE Brent equaled the high of $101.27/b. March NYMEX heating oil, ahead
of contract expiry today, had traded as high as $2.8632/gallon while ICE
gasoil hit a high of $918.50/mt.
Prices then weakened as European-based players started to reverse long
positions and saw a rebound in the US Dollar Index.
The US Dollar Index fell to a low of 73.57 points but has gradually risen
to 73.78 throughout the morning.
Later in the session, market sources had mixed views on the direction the
energy complex will take from here.
One trader was expecting a further "upward move as the funds use oil as
an inflation hedge," while energy analyst Jim Ritterbusch anticipated "some
month end book squaring... as some profits are taken."
The March ICE gasoil contract was pegged at $909.50/mt, up $1.50, while
NYMEX heating oil fell 1.56 cents to trade at $2.8300/gal.
March RBOB traded 1.17 cents lower at $2.4840/gal prior to expiry at the
end of trading today.
--Jean-Luc Amos, jean-luc_amos@platts.com