London (Platts)--2Feb2009

Crude futures fell in early European trading Monday, with bearish
sentiment from macroeconomic data and a poor demand-side picture continuing to
weigh down on the energy futures complex.

At 1010 GMT, the March ICE Brent futures contract traded at
$44.79/barrel, down $1.09/b from the overnight close, while the NYMEX light
sweet crude contract traded at $40.45/b, down $1.23/b.

"On the one hand, the bearish macro backdrop should cap any sharp rallies
above $50/b, while the OPEC cutbacks seem to have stopped -- at least for now
-- the worst of the recent downward spiral," MF Global said in its daily
market report. "Of the two variables, the macro element is by far the more
important."

Friday's US GDP figures of a 3.8% drop in growth in the fourth quarter
were followed on Monday by poor manufacturing figures within the eurozone and
falls across global stock exchanges.

The eurozone's purchasing managers index for the manufacturing sector,
compiled by data and research group Markit, rose to 34.4 points from 33.9
points in December, but remains well below the 50-point threshold, indicating
that activity is in contraction, AFP reported.

In stock markets, the Nikkei in Tokyo finished down 120 points at 7,874,
while in Europe London's FTSE was at 4,064 points, down 85 points, and in
Frankfurt the DAX was at 4,233, down 105 points.

Products markets were all down as well, despite sources of support from
both potential and real strike action in the US and UK and cold weather moving
across Europe.

Strike action in the UK appeared to be spreading with workers at the
Sellafield nuclear plant joining a series of wildcat strikes at energy
facilities in protest at the use of foreign workers instead of unemployed
Britons, AFP reported.

UK refiners however said Monday their plant operations remained
unaffected.

In the US, talks between the United Steel Workers and Shell Oil, the lead
company in contract negotiations, continued Sunday.

About 24,000 refinery workers are covered under the latest contract,
which was scheduled to expire at 12:01 am Sunday morning. The USW, however,
late Saturday extended the contract for 24 hours as talks with Shell were
planned past the expiration deadline.

Across Europe heavy snow fell, causing severe disruption to transport. A
heavy overnight snowfall in England has paralyzed London with transportation
systems shut down in many areas Monday. The snowstorm is the heaviest in 18
years. France and Spain have also been badly affected.

"Demand is there for gasoil," said a London-based broker. "But you won't
be able to move the stuff at the moment. It is not an easy picture to read, a
dire economic situation but very cold weather."

The February ICE gasoil contract was at $437.25/mt, down $12.50/mt.
The NYMEX heating oil and gasoline contracts were at $1.3929/gal and
$1.2310/gal respectively.