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Oil Prices Fall to Five-Month Low in New York

Posted on: Friday, 18 November 2005, 09:00 CST

Oil prices fall to five-month low in New York

NEW YORK, Nov. 17 (Xinhua) -- Oil prices fell to a five-month low on Thursday with stockpiles of US crude deemed sufficient by traders despite forecasts for a frosty heating season to come.

New York's main contract, light sweet crude for delivery in December, dived 1.55 dollars to 56.34 dollars a barrel, the lowest close by crude futures here since June 15.

In London, the price of Brent North Sea crude for January delivery fell 1.15 dollars to 54.85 dollars.

Commercial crude oil stockpiles in the United States are 12 percent higher than a year ago, despite a surprise decrease last week, while inventories of heating oil are running about 8 percent higher, according to government figures.

Refineries in the United States, meanwhile, were running at 86. 2 percent of capacity last week, leaving fuel suppliers room to boost production once cold weather fires up the nation's furnaces.

Unusually warm weather in the US northeast had curbed demand for heating oil and allowed refiners to build stocks. But demand is expected to surge once winter starts to bite.

New York crude futures have now shed more than 20 percent since striking an all-time high of 70.85 dollars on August 30 after Hurricane Katrina tore through US Gulf Coast energy facilities.

But the Organization of Petroleum Exporting Countries expects oil demands to pick up again next year.

In its November report, the cartel forecast that average world oil demand in 2006 would grow up by 1.5 million barrels per day ( mbpd) or 1.8 percent to average 84.8 mbpd, marking a slight upward revision from last month's figure.

Source: Xinhua News Agency - CEIS

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