London (Platts)--23Mar2009

Global crude futures continued to rise Monday, with the front-month NYMEX
WTI contract trading at its highest level so far this year and ICE Brent just
1 cent shy of its 2009 high.

At 11:09 GMT, front-month ICE Brent traded at $51.44/barrel, up 22 cents
from the previous settle, while the front-month NYMEX WTI contract traded 17
cents higher at $52.24/b, a level last seen December 1, 2008.

The ICE Dollar Index traded at 83.398, down by 0.443 points.

"The recent inclination to bid up commodities as both an inflation hedge
and a weak dollar play is clearly what is driving the energy market right
now," energy analyst Edward Meir said in a report.

However, despite the weak dollar providing support, there is widespread
skepticism about the sustainability of the crude rally.

"The market [crude futures] could be running out of steam unless the
dollar weakens further. This could therefore be a short-lived rally," a
London-based broker said. "The market appears overbought and we could soon
start losing momentum," he added.

Meir also noted that weak industrial demand amid prevailing recessionary
conditions could derail the rally in the longer term.

The crude market, meanwhile, was buoyed by news that the US government
plans to purchase $500 billion of US toxic assets, predominantly of the 2005
and 2006 vintage.

US Treasury Secretary Timothy Geithner is set to hold a briefing Monday
to provide details on a program to stabilize the financial system, including
an injection of cash into faltering banks and measures to promote lending.

In the product markets, both NYMEX heating oil and RBOB contracts pushed
higher. The front-month RBOB contract traded at its highest level since
November 5, 2008, while the heating oil contract traded at its highest since
February 10, 2009.
--George Johnson, george_johnson@platts.com