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Oil prices dipped below $57 to a four-month low on Wednesday as dealers bet on another rise in US oil stocks and paid little attention to Opecs forecast the world will need even more of its oil through the winter. Although some investors and analysts predict prices rebound when temperatures fall if oil cartel Opec cuts back on output, prospects of a winter fuel shortfall have receded for now amid sustained mild weather and rising fuel stocks. US crude oil declined to $56.7 a barrel, its lowest since July 21. London Brent crude was down 2o cents at $54.9 a barrel. A two-year rally has been driven by booming demand from the rapidly expanding economies of China and India and a shortage of refineries to pump out gasoline and other fuels. Opec bumped up its world oil demand forecast for 06 and also said demand for its own oil in the fourth quarter of this year would be higher than the cartels output of 30m barrels per day. For months cartels has been pumping nearly flat out, filling the world storage tanks and cutting its reference price to $50.1, its lowest level since the end of March 24. Traders focussed on weekly US oil stock data that are expected to show crude reserves rose 1.8m barrels last week, keeping a cushion above last years levels. The US Energy Information Administration will release weekly figures on Wednesday evening. |
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| Posted : 11/17/2005 |
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