Saguaro
10-23-2007, 02:32 PM
NEW YORK - Oil futures extended their declines Tuesday on expectations that the government's weekly fuel inventory report will show crude supplies grew last week.
Analysts surveyed by Dow Jones Newswires, on average, predict that crude inventories rose by 300,000 barrels during the week ended Oct. 19. However, estimates vary widely, ranging from an increase of 2 million barrels to a decrease of 2 million barrels. The Energy Department's Energy Information Administration will issue its inventory report Wednesday.
Futures have declined every day since crude prices rose to a record above $90 a barrel last week. Tuesday's retreat came as traders shrugged off initial concerns about a possible Turkish incursion into northern Iraq in search of Kurdish rebels.
Concerns about a disruption in Iraqi crude sent oil prices higher early Tuesday, but the fact the gains didn't hold was a sign the market may be due for a correction, or sharp move lower, analysts said.
"I think the market is trying to figure out how far this correction is going to go," said Andrew Lebow, senior vice president at MF Global Inc. in New York.
Light, sweet crude for December delivery fell 96 cents to $85.06 on the New York Mercantile Exchange. November crude, which expired Monday, rose as high as $90.07 on Thursday.
Other energy futures also fell Tuesday. November gasoline fell 2.94 cents to $2.104 a gallon, and November heating oil dropped 1.71 cents to $2.2938 a gallon.
November natural gas fell 20.5 cents to $6.686 per 1,000 cubic feet.
In London, December Brent crude fell 80 cents to $82.47 a barrel on the ICE Futures exchange.
In addition to a build in crude supplies, analysts predict that the EIA report will show refinery utilization rose by 0.3 percentage point to 87.6 percent of capacity. Gasoline supplies, still near record lows, likely rose 1.1 million barrels, and distillate stockpiles, which include heating oil and diesel, likely rose by 200,000 barrels.
A jump in crude inventories could result in even more selling.
"Corrections tend to come fast and furious," said Stephen Schork, a trader and analyst in Villanova, Pa.
At the pump, retail gas prices continued to inch higher in response to oil's surge over the past month. The national average price of a gallon of gas rose 0.1 cent overnight to $2.82, according to AAA and the Oil Price Information Service.
Analysts expect gas prices to move higher to catch up to oil's increase. But if last week's spike in crude prices proves to be temporary, the gas prices may not jump as expected.
http://news.yahoo.com/s/ap/20071023/ap_on_bi_ge/oil_prices;_ylt=At3.61Qi9f49zZFl2X9CeX.yBhIF
Analysts surveyed by Dow Jones Newswires, on average, predict that crude inventories rose by 300,000 barrels during the week ended Oct. 19. However, estimates vary widely, ranging from an increase of 2 million barrels to a decrease of 2 million barrels. The Energy Department's Energy Information Administration will issue its inventory report Wednesday.
Futures have declined every day since crude prices rose to a record above $90 a barrel last week. Tuesday's retreat came as traders shrugged off initial concerns about a possible Turkish incursion into northern Iraq in search of Kurdish rebels.
Concerns about a disruption in Iraqi crude sent oil prices higher early Tuesday, but the fact the gains didn't hold was a sign the market may be due for a correction, or sharp move lower, analysts said.
"I think the market is trying to figure out how far this correction is going to go," said Andrew Lebow, senior vice president at MF Global Inc. in New York.
Light, sweet crude for December delivery fell 96 cents to $85.06 on the New York Mercantile Exchange. November crude, which expired Monday, rose as high as $90.07 on Thursday.
Other energy futures also fell Tuesday. November gasoline fell 2.94 cents to $2.104 a gallon, and November heating oil dropped 1.71 cents to $2.2938 a gallon.
November natural gas fell 20.5 cents to $6.686 per 1,000 cubic feet.
In London, December Brent crude fell 80 cents to $82.47 a barrel on the ICE Futures exchange.
In addition to a build in crude supplies, analysts predict that the EIA report will show refinery utilization rose by 0.3 percentage point to 87.6 percent of capacity. Gasoline supplies, still near record lows, likely rose 1.1 million barrels, and distillate stockpiles, which include heating oil and diesel, likely rose by 200,000 barrels.
A jump in crude inventories could result in even more selling.
"Corrections tend to come fast and furious," said Stephen Schork, a trader and analyst in Villanova, Pa.
At the pump, retail gas prices continued to inch higher in response to oil's surge over the past month. The national average price of a gallon of gas rose 0.1 cent overnight to $2.82, according to AAA and the Oil Price Information Service.
Analysts expect gas prices to move higher to catch up to oil's increase. But if last week's spike in crude prices proves to be temporary, the gas prices may not jump as expected.
http://news.yahoo.com/s/ap/20071023/ap_on_bi_ge/oil_prices;_ylt=At3.61Qi9f49zZFl2X9CeX.yBhIF