the oil price falls a bit

  1. 3,412 Posts.
    Oil, Heating Oil Fall to 3-Month Lows on Adequate U.S. Supply

    Nov. 2 (Bloomberg) -- Crude oil and heating oil fell to three-month lows after an Energy Department report showed that U.S. inventories of distillate fuel, a category that includes heating oil and diesel, dropped less than expected.

    Distillate-fuel stockpiles slipped 159,000 barrels to 120.9 million in the week ended Oct. 28, the report showed. A decline of 1 million barrels was expected, according to the median of forecasts by 13 analysts surveyed by Bloomberg. Crude oil and gasoline supplies rose in line with expectations. Heating oil also fell because warm weather cut demand for the fuel.

    ``The inventory numbers were pretty tame so the market is continuing with its overall downtrend tend,'' said Aaron Kildow, a broker at Prudential Financial Derivatives LLC in New York. ``Distillate demand should be weak. There is no cold weather out there and unless you are in North Dakota it looks like that should continue for the next two weeks.''

    Crude oil for December delivery fell 75 cents, or 1.3 percent, to $59.10 a barrel at 12:42 p.m. on the New York Mercantile Exchange. Prices touched $58.95, the lowest since July 28. Futures have fallen 17 percent since reaching a record $70.85 on Aug. 30. Prices are up 19 percent from a year ago.

    Heating oil for December delivery fell 4.5 cents, or 2.5 percent, to $1.76 a gallon in New York. Prices touched $1.75, the lowest since Aug. 8. Futures reached a record $2.21 on Sept. 1. Heating oil is up 26 percent from a year ago.

    The department released its weekly report on petroleum inventories today at 10:30 a.m. in Washington.

    Warm Weather

    Home-heating demand in the Northeast, where 80 percent of the nation's heating oil is consumed, will be 40 percent below normal through Nov. 9, said Weather Derivatives, a forecaster in Belton, Missouri.

    Retail heating oil in the U.S. averaged $2.623 a gallon in the week ended Oct. 24, up 27 percent from a year ago, the Energy Department said last week.

    Regular gasoline at the pump, averaged nationwide, fell 1.6 cents to $2.467 a gallon yesterday. Prices are down 19 percent from the record $3.057 a gallon on Sept. 2, according to the AAA, the nation's largest motoring organization. Pump prices are 22 percent higher than a year ago.

    Gasoline for December delivery declined 3.36 cent, or 2.1 percent, to $1.57 a gallon in New York. Gasoline is up 22 percent from a year ago.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.