Crude oil futures ease above $63/barrel

London (Platts)--15Sep2006

Crude oil futures in London rose slightly on Friday after tumbling to
their lowest levels in for almost six months on Thursday on easing supply
concerns and news that Nigeria's two oil unions had suspended a strike a day
after it was launched.
The new front-month November crude futures contract was trading 3 cents
above Thursday's close at $63.57/barrel, trading in between the intra-day low
and high of the so far. The October futures contract expired Thursday at
$62.24/barrel.
"There was an initial reaction to the Yemeni attacks, but the bearish
track was soon maintained," one broker at Man Financial said.
Four bombers and a security guard were killed Friday when Yemeni security
forces foiled twin suicide bombings against oil installations, five days
before the impoverished Arab nation goes to the polls, AFP reported.
The bombers, in explosives-laden cars, tried to attack an oil refinery
in Maarib, a lawless tribal area in the desert east of the capital Sanaa, and
a Canadian-run terminal in the southeastern port of Dhabba on the Gulf of
Aden.
The middle distillates market failed to provide much support to the crude
market with crack spreads deteriorating further following Wednesday's larger
than expected distillate stock build at 4.7 million barrels, against the
projected build of 2 million barrels. "Refinery margins are likely to be
pressured until the point when run cuts become significant, and hence OPEC, is
still eyeing a tightening of the crude market from the supply side," Kevin
Norrish, analyst at Barclays Capital said in a report.
--Paul Wightman, paul_wightman@platts.com

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