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Oil drops $1, Wilma threat eases ($63.43/bbl)
Reuters ^ | October 18, 2005

Posted on 10/18/2005 4:47:33 AM PDT by RWR8189

LONDON (Reuters) - Oil fell $1 a barrel on Tuesday as a threatened hurricane was expected to miss rigs and refineries in the U.S. Gulf and the world's top banker said record prices were eroding demand.

U.S. crude lost 98 cents to $63.38 a barrel by 1125 GMT, after a gain of 2.8 percent on Monday. London Brent crude was $1.06 down at $59.51 a barrel.

Tropical Storm Wilma gained strength in the Caribbean Sea and was expected to become a full-blown hurricane, but its path was set to shift east toward Florida and away from the heart of U.S. oil infrastructure in the Gulf of Mexico.

"If it does turn away toward Florida it will be a non-event," said oil trader Colin Tang at investment bank Calyon in Singapore. "The market got ahead of itself on Monday."

Traders worried that Wilma, the 21st named storm of the 2005 Atlantic season, could delay a recovery in U.S. output ahead of peak winter heating fuel demand in the northern hemisphere.

As much as 66.4 percent of the Gulf of Mexico region's normal 1.5 million barrels per day (bpd) production remained shut on Monday in the aftermath of Hurricanes Katrina and Rita, the U.S. Minerals Management Service said in its latest report.

Prices have fallen from a late August high above $70 as signs emerged that high energy costs are eroding demand. But oil, in real terms, is near levels unseen in a quarter century.

U.S. Federal Reserve Chairman Alan Greenspan handed more evidence to investors weighing the extent of oil "demand destruction."

"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," Greenspan said in a speech in Tokyo.

But he said expensive oil was encouraging Americans to become more energy efficient and cut gasoline consumption.

Signs of slower U.S. demand have led to forecasts of lower demand growth, with producer cartel OPEC revising down its 2005 outlook to 1.2 million bpd. It expects demand growth to recover to 1.5 million bpd next year.

Further direction on supplies in the world's largest consumer should come from U.S. government data due on Wednesday.

The data was forecast to show a 1.7 million-barrel build in crude stocks but a 1.8 million drop in distillate inventories, including heating oil.


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government; News/Current Events
KEYWORDS: brent; capacity; cartel; crude; crudeoil; demand; energyprices; funds; gas; gasoline; gasprices; globaldemand; gulf; gulfofmexico; heatingoil; hedgefunds; hurricane; iea; inflation; ipe; iran; lightsweetcrude; middleeast; northsea; nymex; oil; oilcartel; oilinventory; oilrefineries; oilrefinery; opec; refinery; refinerycapacity; rita; speculation; speculators; supply; supplyshock; unleadedgasoline; weather; wilma; wti
 Light, Sweet Crude Oil
10/18/2005 Session Contract Detail for Nov 5
alt alt alt
alt alt
alt alt alt alt
alt Last alt alt alt 63.43 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open High alt alt alt 64.30 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Low alt alt alt 64.30 alt alt
alt alt alt alt
alt
alt alt alt alt
alt High alt alt alt 64.40 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Low alt alt alt 63.37 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Settle alt alt alt 64.36 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Change alt alt alt -.93 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Interest alt alt alt 80897 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Volume alt alt alt 0.00 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Last Updated alt alt alt 10/18/2005 07:13:30

 Unleaded Gasoline

alt alt
alt alt alt alt
alt Last alt alt alt 1.7655 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open High alt alt alt 1.8100 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Low alt alt alt 1.8100 alt alt
alt alt alt alt
alt
alt alt alt alt
alt High alt alt alt 1.8150 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Low alt alt alt 1.7635 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Settle alt alt alt 1.8153 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Change alt alt alt -.0498 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Interest alt alt alt 35750 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Volume alt alt alt 0.00 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Last Updated alt alt alt 10/18/2005 07:13:18

Heating Oil

alt alt
alt alt alt alt
alt Last alt alt alt 1.9450 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open High alt alt alt 1.9850 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Low alt alt alt 1.9850 alt alt
alt alt alt alt
alt
alt alt alt alt
alt High alt alt alt 1.9908 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Low alt alt alt 1.9405 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Settle alt alt alt 1.9833 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Change alt alt alt -.0383 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Open Interest alt alt alt 35965 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Volume alt alt alt 0.00 alt alt
alt alt alt alt
alt
alt alt alt alt
alt Last Updated alt alt alt 10/18/2005 07:16:25

1 posted on 10/18/2005 4:47:35 AM PDT by RWR8189
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To: RWR8189

gasoline futures are down to 1.73 and OK is retailing gas at 2.35 - according to a story yesterday on dallas NBC station. watch for some folks to be dumping gasoline soon.


2 posted on 10/18/2005 9:22:11 AM PDT by q_an_a
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To: Berosus

The prices around here never took a jump upward (not that they had to). Hovering around $2.60, they've slid to around $2.55 -- and now I'm glad I avoided topping the tank yesterday.

from a day ago:

Oil surges on Wilma worries
New tropical storm in the Caribbean threatens already beleaguered Gulf production; blasts rock Iran.
October 17, 2005: 3:32 PM EDT
http://money.cnn.com/2005/10/17/markets/oil.reut/?cnn=yes

"The last time there were so many named storms was 1933."


3 posted on 10/18/2005 9:50:36 AM PDT by SunkenCiv (Down with Dhimmicrats! I last updated by FR profile on Sunday, August 14, 2005.)
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To: RWR8189
"If it does turn away toward Florida it will be a non-event," said oil trader Colin Tang at investment bank Calyon in Singapore.

Maybe it will be a non-event for Mr. Tang, but not for me in Orlando. Last year we got hit by three hurricanes (Charley, Frances and Jeanne) and suffered a near miss from a fourth (Ivan). Here we go again. *sigh*

4 posted on 10/18/2005 8:48:47 PM PDT by Berosus ("There is no beauty like Jerusalem, no wealth like Rome, no depravity like Arabia."--the Talmud)
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