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Crude Oil Is Poised for Record Monthly Drop as Demand Declines

Posted By admin On October 31, 2008 @ 1:28 pm In Money Watch | Comments Disabled

Christian Schmollinger and Grant Smith
BLOOMBERG [1]
Friday, October 31, 2008

Oct. 31 (Bloomberg) — Crude oil fell in New York, poised for its biggest monthly drop since trading began in 1983, on concern that the decline in the U.S. economy will curb fuel demand in the world’s largest energy user.

Oil retreated, taking this month’s decline to 37 percent, after the U.S. Commerce Department said yesterday that gross domestic product contracted in the third quarter at the biggest annual pace since 2001. Showa Shell Sekiyu K.K., Royal Dutch Shell Plc’s Japanese unit, will cut its crude processing by 7 percent during the fourth quarter on falling domestic demand.

“The outlook for demand remains weak while we wait for economic rescue measures to feed their way through the system,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “Even in emerging markets the growth there is likely to be lower than was previously expected.”

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Crude Oil Is Poised for Record Monthly Drop as Demand Declines  161008pptv3 [2]

Crude oil for December delivery fell as much as $2.84, or 4.3 percent, to $63.12 a barrel. It was at $63.12 a barrel at 10:46 a.m. London time on the New York Mercantile Exchange. Oil’s monthly decline may surpass February 1986 as the worst month ever, when it dropped 30 percent to $13.26 a barrel.

Prices have tumbled 56 percent from a record $147.27 on July 11 and are down 32 percent from a year ago. Futures dropped $1.54, or 2.3 percent, yesterday to settle at $65.96 a barrel.

FULL STORY CLCIK HERE [1]


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[1] BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601087&sid=aC3NH2x3xvf8&refer=worldwide

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Gold Posts Biggest Monthly Drop in 28 Years as Dollar Climbs: http://www.prisonplanet.com/gold-posts-biggest-monthly-drop-in-28-years-as-dollar-climbs.html

[4] Crude Oil Rises as Iran Test-Fires Missile, Dollar Declines: http://www.prisonplanet.com/crude-oil-rises-as-iran-test-fires-missile-dollar-declines.html

[5] Oil Rises to Record After U.S. Reports Unexpected Supply Drop: http://www.prisonplanet.com/oil-rises-to-record-after-us-reports-unexpected-supply-drop.html

[6] Goldman Raises Year-End Crude Forecast by 31% to $85: http://www.prisonplanet.com/goldman-raises-year-end-crude-forecast-by-31-to-85.html

[7] Gold Falls in London as Dollar Strengthens, Crude Oil Declines: http://www.prisonplanet.com/gold-falls-in-london-as-dollar-strengthens-crude-oil-declines.html

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