London (Platts)--1May2009

Global crude futures moved lower during European trading hours Friday,
echoing the overnight slide on equities markets. Trading volumes were thin,
however, as financial markets in continental Europe were closed due to a
public holiday.

ICE Brent crude futures for June delivery came close to the $50/barrel
resistance mark in earlier trading but by 1011 GMT had rebounded slightly to
$50.22/b, down 58 cents on the day. The corresponding light sweet West Texas
Intermediate crude contract was 37 cents lower at $50.75/b.

The Dow Jones Industrial Average receded late Thursday to 8,168 points
from a day high of 8,308 points, setting a bearish tone for UK equities.

Crude futures prices bucked the softness of the ICE US Dollar Index,
which shed 0.24 points to 84.55, as well as findings by tanker tracking agency
Oil Movements that eastbound crude oil movements from the Middle East have
picked up in recent weeks.

"[US car maker] Chrysler Corporation's bankruptcy filing, which has been
tossed around for weeks now, was taken in stride by the markets," analyst
Edward Meir at MF Global said. However, with Chrysler's operations continuing
and Fiat possibly taking a stake in the group, "the more important question is
what will happen to GM now."

"But given how long this particular saga has been in the headlines, we
suspect markets are likely prepared for a potential bankruptcy here as well."

A crude derivatives trader attributed crude futures movements to
technical effects. "We had every excuse to break higher yesterday, and we
didn't. This 50 cent [movement] is just noise though. Probably we finish the
day unchanged," he added, noting to the absence of most European participants
from the market.

Product markets took their cue from sliding crude future prices. ICE May
gasoil futures fell $5.75 to $422.25/mt, while NYMEX heating oil and RBOB
front-month futures were 1.16 cents and 1.48 cents lower respectively at
$1.33/gal and $1.45/gal.