Crude Oil Futures Slip ($57.28/bbl)

Associated Press ^ | November 15, 2005

[RWR8189]

SINGAPORE (AP) -- Crude oil futures drifted lower Tuesday as an International Energy Agency official said high pump prices have hurt fuel demand.

Light, sweet crude for December delivery fell 6 cents to US$57.63 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract Monday rose 16 cents to settle at US$57.69.

In London, December Brent crude fell 8 cents to US$54.65 a barrel on the ICE Futures exchange.

High oil prices have started dampening global demand and the slowdown in consumption growth could in turn push prices lower, Noe Van Hulst, the International Energy Agency's Director of Long-Term Cooperation and Policy Analysis, said Monday.

The agency last week revised down its 2005 demand world demand growth forecast by 70,000 barrels a day, to 1.2 million barrels, and 2006 demand growth estimate by 90,000 barrels a day, to 1.66 million barrels a day.

Meanwhile, traders on Tuesday watched weather patterns in the United States and waited for a midweek U.S. petroleum supply report for clearer signals on the direction of prices.

"The market is quiet today; very, very quiet," said chief commodities strategist Tetsu Emori with Mitsui Bussan Futures in Tokyo. "Traders are waiting for direction from the weather and to see the U.S. inventory data later this week."

U.S. commercial crude inventories were expected to rise 1.3 million barrels in this week's government petroleum-inventory data, according to the average estimates of 10 energy analysts surveyed Monday by Dow Jones Newswires.

A rise in refinery utilization was expected to boost distillate stocks, which include heating oil and diesel fuel, by 300,000 barrels, while gasoline stocks were expected to rise 1.35 million barrels, according to the survey.

Oil prices fell to a four-month low closing price of US$57.53 Friday, prompted by last week's U.S. inventory data which showed a large increase in crude and gasoline stocks, overshadowing a seventh straight decline in distillate fuel stocks.

But analysts warned prices could spike without warning as the market was still nervous about ability of hurricane-battered refineries in the Gulf of Mexico to restart operations and gear up for the Northern Hemisphere winter, when heating oil demand peaks.

"Traders might make an abrupt turn around this week though when we get our first taste of winter temperatures," said Phil Flynn of Alaron Trading Corp. in a research note. "Will the market get antsy now?"

Crude futures had risen Monday on predictions a cold snap was headed for the northeastern United States, the world's biggest heating oil market.

Forecaster AccuWeather.com predicted a "dramatic change" in the weather pattern this week, with a cold jet stream, coming from Canada, hitting the eastern U.S. by midweek and staying through the weekend.

Nymex December heating oil fell marginally to US$1.7300 a gallon (3.8 liters) while gasoline gained a tad to US$1.4970 a gallon.

Natural gas rose slightly to US$11.630 per 1,000 cubic feet.

[RWR8189]

Light, Sweet Crude Oil

11/15/2005 Session Contract Detail for Dec 5

	Last				57.28
	Open High				57.65
	Open Low				57.65
	High				57.89
	Low				57.20
	Settle				57.69
	Change				-.41
	Open Interest				114261
	Volume				0.00
	Last Updated				11/15/2005 04:58:22

Unleaded Gasoline

11/15/2005 Session Contract Detail for Dec 5

	Last				1.4840
	Open High				1.4950
	Open Low				1.4950
	High				1.5005
	Low				1.4840
	Settle				1.4961
	Change				-.0121
	Open Interest				41418
	Volume				0.00
	Last Updated				11/15/2005 05:03:49

Heating Oil

11/15/2005 Session Contract Detail for Dec 5

	Last				1.7130
	Open High				1.7300
	Open Low				1.7300
	High				1.7400
	Low				1.7130
	Settle				1.7304
	Change				-.0174
	Open Interest				36833
	Volume				0.00
	Last Updated				11/15/2005 05:04:09

Natural Gas

11/15/2005 Session Contract Detail for Dec 5

	Last				11.591
	Open High				11.600
	Open Low				11.600
	High				11.685
	Low				11.590
	Settle				11.607
	Change				-.016
	Open Interest				49348
	Volume				0.00
	Last Updated				11/15/2005 05:04:04

[DirtyHarryY2K]

BUT BUT BUT The president went to war for oil so his big oil buddies could get rich../sarcasam

[strange1]

But analysts warned prices could spike without warning as the market was still nervous about ability of hurricane-battered refineries in the Gulf of Mexico to restart operations

LMAO, "could spike", and the Sun might rise tomorrow.

In other news it's reported the sun will set tonight and then rise at dawn tomorrow. Stay tuned for further developements through the evening....

[Royal Wulff]

Note that this "demand destruction" is only a decrease in the estimated increase in demand.

Where is the world going to find an additional 1.66 million barrels of oil per day in 2006?

[EQAndyBuzz]

"Where is the world going to find an additional 1.66 million barrels of oil per day in 2006?"

ANWAR?

On a serious note. I heard on the ABC news yesterday that oil proces are falling. Good news, right? The next sentence they say, "oil prices are still 32 cents above August prices."

The MSM are worthless.

[loreldan]

"But analysts warned prices could spike without warning as the market was still nervous about ability of hurricane-battered refineries in the Gulf of Mexico to restart operations and gear up for the Northern Hemisphere winter, when heating oil demand peaks.

"Traders might make an abrupt turn around this week though when we get our first taste of winter temperatures," said Phil Flynn of Alaron Trading Corp. in a research note. "Will the market get antsy now?"

These 'analysts' say the same thing everyday. IMO they must have some interest in getting oil higher. Any news that comes along that brings the price down they try to insert bad news or at least a "but it can go higher at any moment". My guess is that they are doin' some speculatin'.