<<NYMEX crude slips further as SPR draw seen closer
NEW YORK, Sept 13 (Reuters) - Crude oil futures slid further from 10-year highs in afternoon trade Wednesday on news that, if ordered by President Bill Clinton, the government would be able to deliver crude oil from strategic stockpiles within two weeks.
October crude dropped another 24 cents on the news to post a fresh session low of $33.81 a barrel, bringing the day's losses to 47 cents. More selling followed later, pushing October crude sharply lower to $33.55, down 73 cents.
Some buying on the dips followed, trimming losses to 28 cents at $34.
``Everbody is talking the market down and they have had some success, but the question is whether these things will happen at all...the mere talk of more oil is already pushing the market down,'' said Tom Bentz, analyst and trader at Paribas Futures Inc. in New York.
Earlier, OPEC President Ali Rodriguez said the cartel could add two million barrels a day more of oil to the market ``if necessary.''
On Tuesday, the White House said releasing oil from the 571-million barrel Strategic Petroleum Reserve (SPR) was an option being considered, among unspecified steps being examined to prevent a winter fuel supply squeeze.
On Wednesday, U.S. Sen. Charles Schumer, Democrat of New York, said he believes the Clinton administration is ``more likely than ever'' to release oil from the SPR to prevent sharp price spies in winter home heating oil because of runaway crude oil prices.>> |
