Crude-Oil Futures in New York Edge Lower

NEW YORK – Crude-oil futures in New York edged lower Thursday, as concerns about slackening petroleum demand revisited the market.

Gold futures surged to their highest levels of the year, fueled by fund buying, traders and analysts said.

The losses crept into the petroleum market as traders shifted their focus to signs of weakening fuel demand and a slowing economy due to high energy prices.

"The oil market has been on a collision course with the economy, and it’s only a matter of time before high prices start to affect it," said Peter Beutel, an analyst for energy consultancy Cameron Hanover in New Canaan, Conn.

Benchmark light, sweet crude oil futures for October settled down 34 cents at $64.75 a barrel on the New York Mercantile Exchange.

Refined-product futures also dropped, with gasoline for October tumbling 3.86 cents to $1.8987 a gallon. Nymex heating oil futures for the same month settled down 1.29 cents at $1.9120 a gallon.

A monthly market outlook from the Organization of Petroleum Exporting Countries that cut projected world oil-demand growth helped drive Thursday’s losses, traders said. Declines were kept in check by lasting worries about supply disruptions from Hurricane Katrina.

In its latest projection, OPEC cut its projection for world oil-demand in 2005 and 2006 by 150,000 to 200,000 barrels a day due to high energy prices. Now it expects oil demand to rise 1.4 million barrels a day this year, and climb 1.5 million barrels a day next year.

The report followed data this week from the U.S. government showing lower fuel demand and backed similar predictions by other major market forecasters.

October natural gas rose 1.70 cents to close at $11.166 per million British thermal units.

December gold settled up $5.60 at $459.30 an ounce on the Nymex. The contract peaked at $459.70, its strongest level since early December.

Spot gold rose $5.30 to $454.70 an ounce.

December silver settled at $7.078 an ounce, up 3.3 cents.

December copper settled 0.65 cent lower at $1.6045 per pound.

The September Arabica coffee futures contract settled 2.05 cents lower at 89.35 cents a pound on the New York Board of Trade, and December closed down 2.40 cents at 92.25 cents.

Cocoa futures drifted lower. The most-active December contract settled $18 lower at $1,405 per metric ton, near the low of the $1,399 to $1,417 trading range.

World raw sugar futures on the Nybot for October settled up 0.03 cent at 10.33 cents a pound and March closed up 0.02 cent at 10.81 cents.

Chicago Board of Trade December corn settled down 1.25 cents at $2.0650 a bushel.

November soybeans settled 11.50 cents lower at $5.6875 a bushel.

December soft winter wheat futures closed down 4.50 cents at $3.2275 a bushel.