UPDATES ON NOV 6 2008

NOV 6 THURSDAY

SHORT TERM TREND : BEARISH

LONG TERM TREND : BEARISH

S1 RS 3145 , S2 RS 3085

R1 RS 3230 , R2 RS 3370

STAY SHORT AT RESISTENCE.

Crude Oil Falls a Second Day as U.S. Fuel Consumption Slows .

Crude oil fell for a second day, extending yesterday's more

than 7 percent loss, on signs of slowing fuel demand after

a U.S. Energy Department report showed an unexpected

increase in gasoline inventories.

Gasoline supplies in the world's largest energy user rose

1.12 million barrels to 196.1 million barrels last week, the

report showed. A 650,000-barrel drop was forecast,

according to the median of 14 analysts surveyed by

Bloomberg News. Stockpiles of crude oil and distillate

fuel, a category that includes heating oil and diesel,

also climbed.

Crude oil for December delivery declined as much as 95 cents, or

1.5 percent, to $64.35 a barrel on the New York Mercantile

Exchange. It was at $64.68 a barrel at 12:57 p.m. Singapore

time. Prices, which have tumbled 56 percent since reaching

a record $147.27 on July 11, are down 33 percent from a year

ago. Yesterday, futures plunged $5.23, or 7.4 percent, to

$65.30 a barrel, the biggest drop since Oct. 10.

Crude oil stockpiles climbed 54,000 barrels to 311.9 million

barrels in the week ended Oct. 31, the department said.

A 1 million-barrel gain was forecast. Imports dropped

365,000 barrels to 9.97 million barrels a day. The

department released its weekly report yesterday

in Washington.

Oil has also weakened as refiners' processing profits declined.

The profit from making gasoline in the U.S. was at minus

$5.04 a barrel and has been negative since Sept. 19.

Oil also declined because of concern that the U.S. economy

will continue to contract. Companies in the U.S. cut an

estimated 157,000 jobs in October, the most in almost

six years, a private report based on payroll data

showed yesterday.

The drop was larger than forecast and followed a revised

26,000 decrease in September that was bigger than

previously estimated, ADP Employer Services said.

The decline in employment was the biggest since

November 2002, when the U.S. was emerging from

a recession.

Brent crude oil for December settlement fell as much as 89

cents, or 1.4 percent, to $60.98 a barrel on London's ICE

Futures Europe exchange. It declined $4.57, or 6.9 percent,

to settle at $61.87 a barrel yesterday.