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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (42793)	11/11/2005 3:05:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69886

Oil prices fall further below US$58 a barrel 11/11/05 4:52:00 AM VIENNA, Austria (AP) - Crude oil futures slipped further below US$58 a barrel Friday in response to rising supply and falling demand. Analysts said that with crude plentiful for now, any short-term upward pressure on prices would likely come from heating oil and diesel with the arrival of the Northern Hemisphere winter. Light, sweet crude for December delivery fell 71 cents to US$57.09 a barrel on the New York Mercantile Exchange by midday in Europe. On Thursday, the contract fell to US$57.80, the lowest level for the front-month contract since July 21. Brent crude slipped 83 cents to US$54.85 on the ICE Futures exchange. Heating oil was down more than 2 cents at US$1.7208, while gasoline slid nearly 3 cents to US$1.4794 a gallon (3.8 liters) Natural gas was down a cent at US$11.370 per 1,000 cubic feet. The U.S. Energy Information Administration released data this week showing that natural gas in storage grew more than expected last week, surpassing a level that many analysts believe is necessary to meet winter demand. And the Paris-based International Energy Agency said in a monthly report that global oil demand growth in 2005 would be slightly lower than previously expected. The reports gave momentum to a price decline under way due to a moderation in gasoline demand and warmer-than-usual weather in the U.S. Northeast and Midwest, key markets for heating oil. "We don't have any big demand right now. Heating is not upon us yet, cooling is behind us and the summer driving season is behind us," said James Cordier, president of Liberty Trading Group in Tampa, Florida. "If you're going to have a soft spot, this is it." Cordier said the downtrend was likely to be stopped in its tracks by late December, assuming normal winter temperatures. With energy prices falling despite the continued loss of output of oil, natural gas and gasoline in the aftermath of hurricanes Katrina and Rita, Cordier said it is a clear indication that the market is being driven by a dropoff in demand. He added that demand should pick up again later in the year, assuming normal winter weather patterns. PVM Oil Associates in Vienna echoed that view, saying "distillates could push up the market when a cold snap hits key consuming regions." On Wednesday, the U.S. Energy Information Administration said crude oil inventories rose 4.5 million barrels to 323.6 million barrels in the week ended Nov. 4 from a week earlier. Crude stocks are about 13 per cent higher than they were a year ago. Data showed that U.S. storage of natural gas grew last week to 3.2 trillion cubic feet - a level many analysts consider a crucial measure of adequate pre-winter supply. The IEA lowered its forecast for global oil demand growth in 2005 by 70,000 barrels a day to 1.2 million barrels per day. The agency also said that OPEC's production capacity could rise by 1.2 million barrels per day to 33 million barrels per day by the end of next year.