September 20, 2003	Saturday	Rajab 22, 1424

LONDON, Sept 19: IPE Brent crude oil futures forged a new four-month low on Friday, slipping back from earlier gains as tropical storm Isabel weakened and traders jumped on the chance to sell into a thin market.

By 1700 GMT, November Brent was 41 cents weaker at $25.18 on volume of 28,859 lots, after reaching a new four-month low of $25.15. NYMEX October crude futures slipped 49 cents to $26.68.

Traders said news that Hurricane Isabel had been downgraded to a tropical storm had assuaged fears for serious disruption of gasoline distribution and refinery operations, allowing the market to fall.

“A lot of people said that prices had been holding on the back of this hurricane, but the impact of that wasn’t as a bad as people thought it would be,” said one trader.

“People jumped on the back of that...Trade is very thin,” he added.

Isabel battered the eastern coast of the United States on Thursday, killing at least 12 people and leaving a trail of destruction in its wake, but brokers said the status downgrade had reduced its market impact. The storm has swung away from the oil import terminals and major refineries around the US Gulf.

Refiners to the north in Pennsylvania, Delaware and New Jersey, home to about 10 per cent of US refining capacity, were watching the storm’s path, but shipping and refinery sources in the US said they were experiencing only minor delays and were operating at or near normal rates.

Traders said the market needed to close above Thursday’s low of $25.25, or else face further losses next week.

Analysts say the market remains biased towards downside moves. Key support was seen at Thursday’s low of $25.25, and at $25.11, the June 5 correction low, and after that at $24.70, the May 29 correction low.

Upside potential remains limited. Initial resistance was seen at Thursday’s high of $25.70 and then at $25.90 a barrel, the 61.8 per cent retracement from the bull trend off April lows.—Reuters