Crude oil fell to the lowest in more than seven months on forecasts U.S. fuel supplies will climb for an eighth week.
U.S. distillate stockpiles probably rose 11.5 million barrels last week, according to a Bloomberg survey. Colorado State University researchers said no major storms are expected in the Atlantic this year, easing concern that supply from the Gulf of Mexico may be disrupted before demand rises in winter.
``It may be difficult for oil prices to head back north partly because of inflated petroleum inventories in the U.S.,'' said Ken Hasegawa, a manager of the international division at commodity futures broker Himawari CX Inc. in Tokyo. ``The price direction in the short term hinges on whether cold snaps kick in this winter and fuel stocks start declining.''
Crude oil for November delivery fell as much as 41 cents, or 0.7 percent, to $58.27 a barrel in after-hours electronic trading on the New York Mercantile Exchange. That's the lowest since Feb. 16. It traded at $58.38 at 12:36 p.m. Singapore time.
Yesterday, oil dropped 3.9 percent to $58.68, the lowest close since Feb. 16 and the biggest one-day decline since Aug. 17, 2005. Futures have fallen 26 percent from a record $78.40 a barrel on July 14 as tensions in the Middle East eased and U.S. fuel stockpiles increased.
The Energy Department is scheduled to release its weekly report on inventories at 10:30 a.m. today in Washington.
Distillate Stockpiles
U.S. gasoline stockpiles probably increased 1.2 million barrels last week, according to the Bloomberg survey.
Crude oil, gasoline, heating oil, diesel and natural gas supplies in the week ended Sept. 22 were above the five-year average for the period, the Energy Department said. Gasoline stockpiles the previous week jumped by the most in five years.
``The U.S. inventory numbers are probably going to confirm what we know already, that inventories are pretty comfortable,'' said Tobin Gorey, a commodity strategist at Commonwealth Bank of Australia in Sydney.
The U.S. will avoid a repeat of last year's destruction to oil facilities in the Gulf of Mexico by Hurricanes Katrina and Rita, according to scientists William Gray and Philip Klotzbach from Colorado State University who had predicted this Atlantic storm season would be one of the worst.
Brent crude oil for November settlement fell as much as 53 cents, or 0.9 percent, to $57.90 a barrel on the London-based ICE Futures exchange.
Hurricane Season
This is the first time in five years that the U.S. has been untouched by a hurricane, according to the National Hurricane Center in Miami. In 2004, Hurricane Ivan pummeled the U.S. coast, disrupting oil production in the Gulf of Mexico. The Atlantic hurricane season lasts from June through November.
The Colorado State University forecasters expect a total of 11 named storms this year, down from the 13 they predicted last month and the 17 they forecast at the end of May.
The scientists had previously cut their storm forecast twice, as fewer storms than expected formed during the first half of the season.
North Korea's statement yesterday that it will conduct a nuclear test didn't push oil higher.
``The announcement at the moment is simply a fear factor with little immediate impact on prices,'' said Makoto Takeda, an energy analyst at Tokyo-based broker Bansei Securities Co.
South Korea expressed its ``deeply serious concern and regret'' and Japan said a nuclear test would be ``unforgivable'' and require a severe international response to Kim Jong Il's plans. The U.S. government said a nuclear test would ``pose an unacceptable threat'' to the world.
OPEC Output
Oil futures have fallen 7.3 percent this week, the biggest three-day drop in more than a year.
A decline to below $55 a barrel may prompt OPEC's other members including Saudi Arabia, the group's largest producer, to lower output, Bansei Securities' Takeda said.
Production cutbacks announced by Venezuela and Nigeria aren't affecting the market.
``The size of the cuts Nigeria and Venezuela are proposing is so small that all they've succeeded in doing is to communicate to the market that they're worried about how much supply is around,'' Gorey said.
A cut in OPEC's target output of 28 million barrels a day may push oil prices above $60 a barrel, said Mikikaru Amano, an analyst at Taiheiyo Bussan Co. in Tokyo.
U.S. distillate stockpiles probably rose 11.5 million barrels last week, according to a Bloomberg survey. Colorado State University researchers said no major storms are expected in the Atlantic this year, easing concern that supply from the Gulf of Mexico may be disrupted before demand rises in winter.
``It may be difficult for oil prices to head back north partly because of inflated petroleum inventories in the U.S.,'' said Ken Hasegawa, a manager of the international division at commodity futures broker Himawari CX Inc. in Tokyo. ``The price direction in the short term hinges on whether cold snaps kick in this winter and fuel stocks start declining.''
Crude oil for November delivery fell as much as 41 cents, or 0.7 percent, to $58.27 a barrel in after-hours electronic trading on the New York Mercantile Exchange. That's the lowest since Feb. 16. It traded at $58.38 at 12:36 p.m. Singapore time.
Yesterday, oil dropped 3.9 percent to $58.68, the lowest close since Feb. 16 and the biggest one-day decline since Aug. 17, 2005. Futures have fallen 26 percent from a record $78.40 a barrel on July 14 as tensions in the Middle East eased and U.S. fuel stockpiles increased.
The Energy Department is scheduled to release its weekly report on inventories at 10:30 a.m. today in Washington.
Distillate Stockpiles
U.S. gasoline stockpiles probably increased 1.2 million barrels last week, according to the Bloomberg survey.
Crude oil, gasoline, heating oil, diesel and natural gas supplies in the week ended Sept. 22 were above the five-year average for the period, the Energy Department said. Gasoline stockpiles the previous week jumped by the most in five years.
``The U.S. inventory numbers are probably going to confirm what we know already, that inventories are pretty comfortable,'' said Tobin Gorey, a commodity strategist at Commonwealth Bank of Australia in Sydney.
The U.S. will avoid a repeat of last year's destruction to oil facilities in the Gulf of Mexico by Hurricanes Katrina and Rita, according to scientists William Gray and Philip Klotzbach from Colorado State University who had predicted this Atlantic storm season would be one of the worst.
Brent crude oil for November settlement fell as much as 53 cents, or 0.9 percent, to $57.90 a barrel on the London-based ICE Futures exchange.
Hurricane Season
This is the first time in five years that the U.S. has been untouched by a hurricane, according to the National Hurricane Center in Miami. In 2004, Hurricane Ivan pummeled the U.S. coast, disrupting oil production in the Gulf of Mexico. The Atlantic hurricane season lasts from June through November.
The Colorado State University forecasters expect a total of 11 named storms this year, down from the 13 they predicted last month and the 17 they forecast at the end of May.
The scientists had previously cut their storm forecast twice, as fewer storms than expected formed during the first half of the season.
North Korea's statement yesterday that it will conduct a nuclear test didn't push oil higher.
``The announcement at the moment is simply a fear factor with little immediate impact on prices,'' said Makoto Takeda, an energy analyst at Tokyo-based broker Bansei Securities Co.
South Korea expressed its ``deeply serious concern and regret'' and Japan said a nuclear test would be ``unforgivable'' and require a severe international response to Kim Jong Il's plans. The U.S. government said a nuclear test would ``pose an unacceptable threat'' to the world.
OPEC Output
Oil futures have fallen 7.3 percent this week, the biggest three-day drop in more than a year.
A decline to below $55 a barrel may prompt OPEC's other members including Saudi Arabia, the group's largest producer, to lower output, Bansei Securities' Takeda said.
Production cutbacks announced by Venezuela and Nigeria aren't affecting the market.
``The size of the cuts Nigeria and Venezuela are proposing is so small that all they've succeeded in doing is to communicate to the market that they're worried about how much supply is around,'' Gorey said.
A cut in OPEC's target output of 28 million barrels a day may push oil prices above $60 a barrel, said Mikikaru Amano, an analyst at Taiheiyo Bussan Co. in Tokyo.
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