Crude Oil Futures Fall ($56.79/bbl)

Associated Press ^ | November 29, 2005 | Gillian Wong

[RWR8189]

SINGAPORE (AP) -- Crude oil futures fell Tuesday as unseasonably mild weather along the U.S. East Coast spurred hopes that this year's Northern Hemisphere winter could be warmer than expected, weakening demand for heating fuel.

Light, sweet crude for January delivery on the New York Mercantile Exchange lost 34 cents to US$57.02 a barrel in Asian electronic trading. The contract fell US$1.36 to settle at US$57.35 a barrel Monday.

In London, January Brent fell 53 cents to US$54.35 per barrel on the ICE Futures exchange.

In recent weeks, the market has been fixated on weather patterns in the northeastern U.S., the world's biggest heating fuel market. Warmer weather has depressed prices, while snowstorms and concerns about a colder-than-normal winter have raised prices.

"Nothing like a post-Thanksgiving spring storm to sink the energy complex," said Phil Flynn, an analyst with Alaron Trading Corp. in a research note, referring to the U.S. holiday last Thursday. "The warmer-than-normal temperatures are raising hopes that this winter will continue on the warmer than normal side."

Heating oil fell 0.76 cents to US$1.6280 a gallon (3.8 liters) while gasoline inched down 0.27 cents to US$1.4155 a gallon.

January natural gas rose 3.1 cents to US$11.665 per 1,000 cubic feet.

But many analysts expect the current mild weather to be short-lived. A snowstorm currently battering some western and midwest states is projected to head east and send temperatures plunging by the end of this week, according to AccuWeather.com.

"We can expect more normal readings soon but with each day that doesn't require heat, sellers will try to pile on," Flynn said.

Also weighing on prices were expectations a midweek U.S. government petroleum inventories report would show an increase in fuel supply in the week ended Nov. 25, as refinery runs rose.

Ten energy analysts surveyed by Dow Jones Newswires forecast a rise in distillate stocks of 595,000 barrels on average, while gasoline stocks were expected to climb by 755,000 barrels on average. Distillate inventories include heating oil and diesel fuel.

Refinery utilization was expected to show another significant increase, with nine of the 10 analysts projecting runs to increase anywhere from 0.25 of a percentage point to 2 percentage points above last week's 88.1 percent of operable capacity.

Crude inventories were expected to fall about 220,000 barrels in government and industry data this week, according to the average estimate of analysts polled Monday.

Meanwhile, Saudi Arabian Oil Minister Ali Naimi on Monday said the international oil market was "balanced," and the inventories were "comfortable for consuming countries," but he would not say if the Organization of Petroleum Exporting Countries would cut production at its meeting in Kuwait City next month.

Cartel members are pumping some 30 million barrels a day, and they have a spare capacity of 2 million barrels a day.

[RWR8189]

Light, Sweet Crude Oil

11/29/2005 Session Contract Detail for Jan 6

	Last				56.79
	Open High				57.30
	Open Low				57.30
	High				57.40
	Low				56.75
	Settle				57.36
	Change				-.57
	Open Interest				281706
	Volume				0.00
	Last Updated				11/29/2005 04:40:58

Unleaded Gasoline

11/29/2005 Session Contract Detail for Dec 5

	Last				1.4200
	Open High				1.4200
	Open Low				1.4200
	High				1.4250
	Low				1.4155
	Settle				1.4182
	Change				+.0018
	Open Interest				19267
	Volume				0.00
	Last Updated				11/29/2005 04:38:21

Heating Oil

11/29/2005 Session Contract Detail for Dec 5

	Last				1.6350
	Open High				1.6375
	Open Low				1.6375
	High				1.6400
	Low				1.6280
	Settle				1.6356
	Change				-.0006
	Open Interest				19904
	Volume				0.00
	Last Updated				11/29/2005 04:39:05

Natural Gas

11/29/2005 Session Contract Detail for Jan 6

	Last				11.748
	Open High				11.660
	Open Low				11.660
	High				11.779
	Low				11.621
	Settle				11.634
	Change				+.114
	Open Interest				99452
	Volume				0.00
	Last Updated				11/29/2005 04:40:44

 

[Racer1]

Don't worry, someone will come up with a story to pump it back up. Didn't you ever notice that the past few months. Every time the price tries to fall, a story about shortages, cold weather, demand, or something comes out. Too many speculators in the oil market. Its a real greed machine.

[aardvark1]

Panic stories only work in the short term. Eventually reality catches up.

[knarf]

Both the squirrel's nests and wasp nests are high and exposed here in SW PA .... mild winter.

[mmercier]

This is obviously Bush's fault...

Er.. it is only his fault when prices go up, I forgot.

The retards I work with were blaming Bush last month when prices were up; as unsustainable prices plummet this month it is now the 'market' that did not exist last month in their little minds that caused the drop.

Ya got to love the left, they have a captive audience that will believe what they are told when they are told with no concept of contradiction considered.

Once it snows in the east and prices again spike it will again be Bush's fault and the market will again cease to exist.

[SoFloFreeper]

Global Warming rocks.

[knarf]

Absolutely !
Heat rises ...from the rocks below.

[Erik Latranyi]

The retards I work with were blaming Bush last month when prices were up; as unsustainable prices plummet this month it is now the 'market' that did not exist last month in their little minds that caused the drop.

Which is why they will continue to lose elections, even if they make some small gains here and there (Santorum will probably lose in PA)

[daku]

Gas in the Chicago suburb was $2.18/gal. last night when I tanked up

this at $56 ~ for crude

what gives ?

[palmer]

Gas is cheap. A bit over a year ago crude was $40 and gas was $1.92

[John O]

(Santorum will probably lose in PA)

How much of this will be due to him backing scottish law over a real Republican in the primary instead of keeping his nose out of it?

[Erik Latranyi]

How much of this will be due to him backing scottish law over a real Republican in the primary instead of keeping his nose out of it?

I think that plays a smaller role than you think. The Dems are running a semi-conservative (pro-life, pro-gun). In this rusted union state, they will vote Dem.

[rightinthemiddle]

The MSM is very upset. You shouldn't be posting Republican propaganda like this.

[norraad]

..msm upset, pipelines & refiners going nuts too, looking for storage for all the unsold product laying around.

I think of all those 'tards sobbing about too little refining capacity.

Most refineries are almost on idle today.

[mmercier]

>> Which is why they will continue to lose elections

They also lose elections because their followers don't vote, just bitych.

Enlightened self interest plays a role too, especially for the uninformed who occasionally vote.

[thackney]

Most refineries are almost on idle today.

Would please support that claim with some links?

[lwg8tr]

Well we have all the Housing Bubble nonsense popping up here and in the MSM. So there is always something for negative and miserable to whine about.

[KamperKen]

Still overpriced by $25-30 per barrel.

[NeoCaveman]

See, global warming is good for the economy!