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Wednesday, November 5, 2008

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NOV 5 WEDNESDAY

SHORT TERM TREND : SIDEWAYS

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Oil Falls as Investors Judge Gains Excessive; Gold Pares Gains .

Crude oil fell in New York as investors judged yesterday's

10 percent gain as excessive on signs of slowing fuel

demand after U.S. auto sales dropped to their lowest

in 17 years.

Crude oil for December delivery declined as much as $2.08,

or 3 percent, to $68.45 a barrel on the New York Mercantile

Exchange. It was at $68.50 a barrel at 1:33 p.m. Singapore

time. Prices, which have tumbled 53 percent since reaching

a record $147.27 on July 11, are down 27 percent from

a year ago.

Futures rose $6.62, or 10 percent, to $70.53 a barrel

yesterday, the highest settlement since Oct. 21. It was

the biggest one-day gain since Sept. 22.

Oil prices were boosted by the biggest presidential- election

day rally in the U.S. stock markets in 24 years and the

fading dollar. The currency was little changed at $1.2870

per euro at 12:17 p.m. Singapore time after declining 2.6

percent yesterday to $1.2966 per euro.

OPEC decided at a meeting in Vienna last month to cut the

production target for 11 of the group's members by 1.5

million barrels a day, from 28.8 million barrels a day.

Brent crude oil for December settlement fell as much as

$2.04, or 3.1 percent, to $64.40 a barrel on London's ICE

Futures Europe exchange. It was at $64.40 a barrel at

1:33 p.m. Singapore time. The contract increased $5.96, or

9.9 percent, to settle at $66.44 a barrel yesterday, the

highest since Oct. 21

Oil inventories probably rose 1 million barrels from 311.9

million barrels in the week ended Oct. 24. Refinery use

probably rose to the highest since August.

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