OCT 31 FRIDAY
SHORT TERM TREND : SIDEWAYS
LONG TERM TREND : BEARISH
S1 RS 3200 , S2 RS 3120
R1 RS 3300 , R2 RS 3350
STAY SHORT AT RESISTENCE.
Crude Oil Is Poised for Biggest Monthly Drop as Demand
Declines .
Crude oil fell in New York, poised for its biggest
monthly drop since trading began in 1983, on concern
that the decline in the U.S. economy will curb fuel
demand in August fell 8.9 percent from a year earlier, the
Energy Department said.
Oil retreated, taking this month's decline to 36 percent, after
the U.S. Commerce Department said yesterday that gross
domestic product contracted in the third quarter at the biggest
annual pace since 2001. U.S. fuel demand in August fell 8.9
percent from a year earlier, the Energy Department said.
Crude oil for December delivery fell as much as $1.60, or
2.4 percent, to $64.36 a barrel. It was at $64.51 a barrel at
12:35 p.m. Singapore time on the New York Mercantile
Exchange. Oil's monthly decline may pass February 1986
as the worst month ever, when it dropped 30 percent to
$13.26 a barrel.
Prices, which have tumbled 56 percent from a record
$147.27 on July 11, are down 32 percent from a year ago.
Futures dropped $1.54, or 2.3 percent, yesterday to
settle at $65.96 a barrel.
Oil climbed more than $4 a barrel on Oct. 29, the biggest gain in
a month, after the U.S. and China, the two biggest energy
consumers, cut interest rates to spur economic growth.
Prices also rose because the dollar fell the most against
the currencies of six major U.S. trading partners since 1998.
China, the largest energy consumer after the U.S., cut
interest rates this week after economic expansion in the
third quarter slowed to the slowest pace in five years.
Monthly data for U.S. August fuel consumption, measured
in terms of products supplied by refiners, dropped to
17.4 million barrels a day, according to the Petroleum
Supply Monthly. That was down from 19.1 million
barrels in August 2007.
U.S. fuel demand during the past four weeks averaged 18.9
million barrels a day, down 7.8 percent from a year ago, an
Energy Department report showed Oct. 29. UBS AG yesterday
cut its 2009 oil-price forecast by 43 percent to $60 a barrel
from $105 because the global economic slowdown may
reduce demand.
OPEC agreed on Oct. 24 to reduce their production targets by
1.5 million barrels a day in an attempt to bolster falling
oil prices. The OPEC basket price, a weighted average of
11 crude grades produced by the group, was at $58.13 a
barrel on Oct. 29, down from a peak of $140.73 a barrel
on July 3.
Brent crude oil for December settlement fell as much as
$1.73, or 2.7 percent, to $61.98 a barrel on London's ICE
Futures Europe exchange. It was at $62.10 a barrel at
12:36 p.m. Singapore time. Prices have fallen 31 percent
in the past year.
Crude oil may rise next week on speculation that interest
- rate cuts in the U.S. and China will bolster fuel demand
and as traders buy on speculation of rally after an historic
decline.
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