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Crude futures fall on milder weather
The Associated Press
Crude oil futures fell Oct. 27 in New York to settle at $29.92 a barrel — the same level as Oct. 22 — as traders and analysts found little reason to support prices.
Analysts cited mild weather in the Northeast, sufficient current levels of supply and indications of growing crude oil supply as reasons for the price weakness.
“It’s weather-related, definitely,” said Ed Silliere, a trader with Energy Merchant in New York. “And, in general, there’s a bearish technical picture.”
Light, sweet December crude oil futures settled down 24 cents at $29.92 a barrel after touching a low of $29.70.
On London’s International Petroleum Exchange, December Brent blend crude oil futures settled down 19 cents at $28.39 a barrel after touching a low of $28.20.
The market drifted cautiously lower after early reports of refinery problems in Texas City, Texas, later turned out to not be as severe as feared, Silliere said.
Funds’ selling also has pressured the market lower, he added. Analysts and traders warned that Oct. 24’s commitments of traders report indicated funds were vulnerable to selling pressure.
The Commodity Futures Trading Commission said Oct. 24 that as of Oct. 21, the large, noncommercial investors were net long 21,027 crude contracts, up from 19,442 the previous week on the New York Mercantile Exchange. Braced for OPEC cut With the effects of a planned cut in output by the Organization of Petroleum Exporting Countries set to begin Nov. 1, analysts and traders are likely to remain cautious through the expiration Oct. 31 of November heating oil and gasoline contracts, said Mike Fitzpatrick, an analyst with Fimat USA Inc.
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