Skip to comments.World oil prices near 4-month low
Posted on 11/11/2005 1:51:43 PM PST by LdSentinal
LONDON -- World oil prices fell further on Friday, with New York's main contract plunging to the lowest point in almost four months, owing to mild temperatures in the United States, where crude inventories are recovering also after recent hurricanes.
New York's main contract, light sweet crude for delivery in December, fell 40 cents to 57.40 dollars per barrel in pit deals. Earlier on Friday it had hit 56.93 dollars, its lowest point since July 21.
In London, the price of Brent North Sea crude for December delivery shed 81 cents to 54.87 dollars per barrel in electronic dealing.
"Warm weather has recently been the key depressing factor for oil though we note that in the main US northeast heating oil region, forecasts are for significantly colder weather to arrive late next week," Barclays Capital analyst Kevin Norrish said.
"We continue to view the market as getting a little complacent about product availability and the arrival of colder weather could be the catalyst required to end the recent downtrend," he added.
Prices were being weighed down also by rising crude stockpiles in the United States, the world's biggest consumer of energy.
The US Department of Energy had said on Wednesday that crude inventories rose for the fifth week, by 4.5 million barrels to 323.6 million in the seven days ending November 4.
The International Energy Agency followed up the data by shaving its forecast for oil demand growth in 2005 and 2006.
The Paris-based agency on Thursday revised down its forecast for growth of global oil demand this year by 70,000 barrels per day to 1.20 million barrels per day and for next year by 90,000 barrels per day to 1.66 million barrels.
Crude futures in New York have fallen by about 19 percent since reaching a record high of 70.85 dollars on August 30, a day after Hurricane Katrina hit major oil installations in the Gulf of Mexico and onshore refineries.
Manoucheht Takin of the Center for Global Energy Studies said the sharp falls indicated that high prices are beginning to erode demand. "This is the third year prices are high, and since the end of 2003 people have been anticipating that consumers would buy less. I think we are beginning to see a decline in demand in response to high prices," he said
I think the market is working.
If oil prices are going down, they why were they raised from 2.15 a gallon to 2.30 a gallon here in central Indiana? More price gouging............
It always does given the opportunity.
Because so much refining capacity is off line and the emergency shipments of fuel to US from Europe will stop shortly with the unloading of the last tanker.
Expect gas prices to hike up again
Thanks dims and environazis.
Wife saw gas at $1.91 a gallon on the way to work today- it's certainly welcome.
Strange stuff here in OH too. Prices have been dropping slowly but surely, down to an average of about 2.16, then just a few days ago we were delighted to see 2.03 at a couple of places, then the very next day those places went back up to 2.25.
"If oil prices are going down, they why were they raised from 2.15 a gallon to 2.30 a gallon here in central Indiana? More price gouging............"
it did the exact opposite here this week
from 2.30 to 2.15 in NH
maybe they switch off or something ;)
I think it's strange that gas is $2.25gal when the price per barrel is around $58.
It has to go back up. Sorry.
Gas was as high as $3.20 around here, now down to $2.75. DAMN GAS TAX!
Hey, where are all the Peak Oilers (or were they commodity traders pretending to be Peak Oilers to foment emotional futures buying) and those forecasting $100 / BBL? Where, I ask ... where?
I bought gas in Frederick, MD on 11/09 for 2.16 a gallon. It has come down to around 2.36 per gallon in Silver Spring, MD. I'm sorry to hear its about to go back up.
You might want to add a copper lining to that tinfoil hat.
The MARKET dictates supply, demand and prices.
Please tell us you don't really believe your post.
Pity the oil companies. Some may not survive this catastrophic market crash.
There are many members here who post intelligently based on facts and a knowledge of the subject matter.
Then, there are other members who . . .
Fill in your own narrative.
Just wait, BP has threatened to cut production if Washington state doesn't allow them to run more, larger tankers in the Puget Sound. Gasoline for eight western states is produced in WA.
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