LONDON, Nov 11: World oil prices fell further on Friday, with New York’s main contract plunging to the lowest point for almost four months, owing to mild temperatures in the United States, where crude inventories are recovering also after recent hurricanes.
New York’s main contract, light sweet crude for delivery in December, fell 40 cents to $57.40 per barrel in pit deals. Earlier on Friday it had hit $56.93, its lowest point since July 21.
In London, the price of Brent North Sea crude for December delivery shed 81 cents to $54.87 per barrel in electronic dealing.
“Warm weather has recently been the key depressing factor for oil though we note that in the main US northeast heating oil region, forecasts are for significantly colder weather to arrive late next week,” Barclays Capital analyst Kevin Norrish said.
“We continue to view the market as getting a little complacent about product availability and the arrival of colder weather could be the catalyst required to end the recent downtrend,” he added.
Prices were being weighed down also by rising crude stockpiles in the United States, the world’s biggest consumer of energy. The US Department of Energy had said on Wednesday that crude inventories rose for the fifth week, by 4.5 million barrels to 323.6 million in the seven days ending November 4.
The International Energy Agency followed up the data by shaving its forecast for oil demand growth in 2005 and 2006.—AFP
