London (Platts)--2Jun2008

Downward momentum resumed in crude futures markets Monday, negating
Friday's brief rally as weaker products markets and less-than-bullish
sentiment moved the complex lower, market sources said.

At 09:54 GMT, the July ICE Brent futures contract slipped $1.18/barrel to
$126.60/b, while the July NYMEX light sweet crude traded at $126.21/b, down
$1.14/b.

The new front month NYMEX heating oil and gasoline contracts were down
1.78 cents/gal and 1.18 cents/gal to at $3.6489/gal and $3.3364/gal,
respectively.

"There is downward pressure after all these highs--sentiment is turning
away from very bullish to neutral, although not bearish at this stage," a
London-based trader said. "Now it is critical--if the market is really to move
down it has to hit $120/b."

"Technically, although most of our charts show that the longer-term
upchannels are still intact, prices are perched precariously on the shorter
term channels and prone to a break lower if they are unable to push off
support lines," MF Global analyst Ed Meir said in a daily report.
The June ICE gasoil futures contract traded at $1,180.00/mt, down $9/mt
since Friday's close.
--Paul Hailey, paul_hailey@platts.com