Thursday, November 10, 2005

Crude oil futures fall again

Despite the House of Representatives nixing oil production in ANWR, crude oil futures continued to fall. Why the House caved is beyond me. From Bloomberg:

Nov. 10 (Bloomberg) -- Crude oil fell to a 15-week low after U.S. stockpiles grew to their largest since early July, with imports restored to their average levels before Hurricane Katrina.

U.S. supplies of crude were 11 percent above their five-year seasonal average last week after increasing more than expected, a government report showed yesterday. The International Energy Agency said today the oil market ``appears to have weathered the worst of the storm'' and lowered its forecast for fourth-quarter demand by 400,000 barrels a day to 85.1 million a day.

``There's a lot of crude floating in the market after OPEC increased production to compensate for the hurricanes,'' said Simon Wardell, an oil analyst at Global Insight in London. ``Demand seems to have taken a bit of a knock after the hurricanes.''

Crude oil for December delivery fell as much as 57 cents, or 1 percent, to $58.36 a barrel on the New York Mercantile Exchange, the lowest price since July 25 [bold mine]. It was down 46 cents at 1:35 p.m. London time. Oil has dropped 17 percent from a record $70.85 on Aug. 30, the day after Katrina struck the U.S.


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