“Oil prices are very much influenced by fears of recession,” said Sintje Diek, an analyst with HSH Nordbank in Hamburg. “The picture is of falling oil demand. We see inventories of crude oil continuing to rise, also gasoline, as consumers will drive less.”
Crude oil for January delivery dropped as much as $1.82, or 3.3 percent, to $52.62 a barrel in electronic trading on the New York Mercantile Exchange. It was at $53.60 a barrel at 11:06 a.m. London time. Futures have dropped 64 percent since reaching a record $147.27 on July 11.
Markets in the U.S. will be shut today because of the Thanksgiving holiday. Floor trading at Nymex will be halted as electronic transactions continue.
Brent crude oil for January settlement fell as much as $1.94, or 3.6 percent, to $51.98 a barrel on London’s ICE Futures Europe exchange. It was at $53.20 a barrel at 11:06 a.m. London time.
Inventories
U.S. crude-oil supplies rose 7.28 million barrels to 320.8 million barrels last week, the Energy Department said. It was the ninth straight increase, the longest stretch since April 2005. Stockpiles were forecast to climb 1 million barrels, according to the median of 14 analyst estimates in a Bloomberg News survey.
Gasoline inventories rose 1.84 million barrels, or 0.9 percent, to 200.5 million barrels, the department said. A 500,000 barrel gain was forecast, according to the survey.
Crude oil demand may climb as refineries boost processing. Refineries increased operating rates by 1.3 percentage points to 86.2 percent of capacity, the highest since September. A 0.1 percentage-point gain was forecast.
OPEC nations may cut output for the second time in as many months after recessions in the U.S. and Europe dragged oil below $50 a barrel. Last month, they agreed to cut production by 1.5 million barrels a day.
Author: Jo Amey
