London (Platts)--27Apr2009

Global crude futures started the week on a significantly lower note
Monday, dragged down by concerns about the impact of the swine flu outbreak on
the world economic recovery and comments by Algerian oil minister Chakib
Khelil that it may not be necessary for OPEC to further cut output, market
sources said.

"The falls are driven by the outbreak of the [swine] flu, which is also
driving equities lower," a crude trader said. He also pointed to signs that
OPEC could refrain from further cutting its crude output target at its next
meeting in late May.

By 1006 GMT, light sweet West Texas Intermediate crude for June delivery
was $2.60 lower at $48.95/barrel, while ICE Brent front-month futures were
$2.29 lower at $49.38/b.

Earlier in the session, the crude markers dipped to as low as $48.65/b
and $49.01/b respectively, more than erasing Friday's gains.

"Oil futures are closely correlated to the stock market," another trader
said. "People are quite pessimistic about the global economy. The flu is a
very short-term factor which accelerates [downward movements]."

"A major pandemic would have strong repercussions on demand but we are
starting the week with a flu panic, and panic is never a good friend,"
consultant Olivier Jakob at Petromatrix said in his daily note. "A Monday
selloff is now a recurring intra-week pattern."

Hong Kong's Hang Seng index tumbled 2.7%, while Germany's DAX and the
UK's FTSE 100 index eased more than 1% each, dragged lower by equities
affiliated with the air and travel industry. The ICE Dollar Index edged up
0.56 points to 85.27 points.

Algeria's Khelil had said over the weekend: "Given the developments we
have seen [since the last OPEC meeting in March] and an analysis of current
market conditions, we will probably reach $60/b by the end of 2009."

Product markets mirrored the softness of crude futures. ICE gasoil
front-month futures tumbled $13.75/mt to $419.25/mt, while NYMEX heating oil
and RBOB futures shed 6 cents and 5.2 cents respectively to $1.31/gal and
$1.39/gal respectively.