Oil prices fall below US$61 a barrel amid easing fears about OPEC output cuts ($60.43/bbl)

Associated Press ^ | October 3, 2006

[RWR8189]

SINGAPORE (AP) - Oil prices fell in Asian trading Tuesday after losing nearly US$2 a barrel in the previous session amid easing concerns about the possibility of more production cuts by OPEC members.

The contract dropped 3 per cent overnight in New York as traders discounted threats of output cuts and focused on high U.S. oil product inventories. Despite reduced refinery runs, traders were expecting to see a build in U.S. gasoline and distillate stocks in weekly petroleum supply data released Wednesday by the U.S. Department of Energy.

Light, sweet crude for November delivery dropped 11 cents to US$60.92 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell US$1.88 Monday to settle at US$61.03 a barrel.

November Brent crude at London's ICE Futures exchange fell 24 cents to US$60.21 a barrel.

Heating oil prices fell 0.68 cent to US$1.695 a gallon while gasoline futures rose marginally to US$1.5092 a gallon. Natural gas prices dropped 10.8 cents to US$5.535 per 1,000 cubic feet.

On Friday, Venezuela said it would reduce oil output by 50,000 barrels a day to try to stem the recent fall in crude prices. Nigeria on Saturday said it was cutting oil exports by 5 per cent, which the state-owned oil company described as a routine seasonal reduction.

But Fimat USA broker Mike Fitzpatrick in a research note the two countries' "planned cutbacks would have little impact on prices unless larger producers in the cartel also joined in the move."

In its weekly petroleum supply snapshot, the U.S. Energy Department is expected to report that gasoline inventories rose an average of 1.2 million barrels, according to a Dow Jones Newswires poll of analysts. Distillate stocks, which include heating oil and diesel fuel, were expected to grow 1.3 million barrels.

Crude stocks were likely to fall for the fifth straight week, by an average of 700,000 barrels, the survey predicted.

[RWR8189]

Light Sweet Crude Oil

10/3/2006 Session Contract Detail for Nov 6

	Last				60.43
	Open High				60.90
	Open Low				60.90
	High				61.15
	Low				60.32
	Settle				61.03
	Change				-.60
	Open Interest				260268
	Volume				0.00
	Last Updated				10/03/2006 04:42:59

Unleaded Gasoline

10/3/2006 Session Contract Detail for Nov 6

	Last				1.4950
	Open High				1.5050
	Open Low				1.5050
	High				1.5092
	Low				1.4950
	Settle				1.5087
	Change				-.0137
	Open Interest				23911
	Volume				0.00
	Last Updated				10/03/2006 04:38:0

Natural Gas

10/3/2006 Session Contract Detail for Nov 6

	Last				5.530
	Open High				5.615
	Open Low				5.615
	High				5.645
	Low				5.516
	Settle				5.643
	Change				-.113
	Open Interest				121197
	Volume				0.00
	Last Updated				10/03/2006 04:39:14

Heating Oil

10/3/2006 Session Contract Detail for Nov 6

	Last				1.6810
	Open High				1.6978
	Open Low				1.6978
	High				1.7025
	Low				1.6807
	Settle				1.7018
	Change				-.0208
	Open Interest				83353
	Volume				0.00
	Last Updated				10/03/2006 04:46:23

[soccer_maniac]

Crude has dropped more in European trading

Down to $60.41 at the moment

http://finance.yahoo.com/q?s=CLX06.NYM

[goldstategop]

If it goes below $60 a barrel of oil, the price of gas should stabilize in this country around $2.25 a gallon.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[Hydroshock]

Gas $1.98 in Pasadena TX

[hnj_00]

this is Bush's fault....he is manipulating the price just so that there is another reason for the lib/dems to hate him...if it goes up...he is colluding with big oil..it is goes down it is for politcal gains!!! pick your poison but the lib/dems & msm will see the downside in any positivie good news!!!!

[babaloo]

The Des Moines Register's lead editorial today argues that gas should go back up to $3.00/gal so we will be forced to develop alternatives. Of course they also excoriated "Big Oil" earlier for the excessive profits.

[R.W.Ratikal]

You are right. Falling gas prices is certainly bad news for Democrat/Socialists. Anything good that happens to America makes it bad for the Dem/Socs.

Socialism always thrives when bad economic or social downturns occur.

The really amazing things is that more people don't see this.

The biggest lesson to be learned is that the iron law of supply and demand is alive and well. As gas prices neared $3.00 per gal. consumption dropped like a stone. Even Venezuela was affected. Notice the increased number of CITCO ads lately on TV?

[kittymyrib]

"Notice the increased number of CITCO ads lately on TV?"

Venezuela has their demented president to thank for their nose-dive. His performance at the UN kicked off the Citgo boycott that caused 7-11 to drop Citgo, a big chunk of their business in the US, and virtually no one stops at a Citgo marked station in Texas these days.

[q_an_a]

What will Chavez do without 7-11's contract with Citgo? That has to take 20 million gallons of gasoline each month off his sales charts. 7-11 has 30,000 stores many have gasoline - lets say 15,000 @ 100 gallons each day that is 1.5 millon gallons a day. It is hard to find that kind of customer without cutting your prices. Watch for a small war.

[Hydroshock]

China will buy it.

[Kay]

Good point. It's rather humerous that Chavez is cutting his production by 50,000 barrels. Wonder if the real reason for the cut is that lack of demand for Citgo. I, for one, would like to see him keep reducing his oil production as it would reduce his financial power.

[1Old Pro]

Heating oil prices fell 0.68 cent to US$1.695 a gallon while gasoline futures rose marginally to US$1.5092 a gallon

Here in New York, there is another dollar on top of wholesale prices in state taxes- it's pathetic gouging BY THE GOVERNMENT.

[q_an_a]

They need special refinement for his heavy crude. They can do it, but why would they? If the price of gas is going down and they locked in pricing when it was around 70, I bet they will be looking at some of their deals with fresh bite marks on their behinds and stay away from Chavez's oil.

[RightWhale]

Whatever it was driving commodity prices down the past couple days appears to be over. NYMEX crude oil up about $3. RBOB gasoline up about 6 cents.

[patton]

Undead thread.

[Non-Sequitur]

Ah the good old days...

[RightWhale]

NYMEX crude oil 123.14

heating oil 3.43