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Energy futures mostly lower; investors disagree where the market is headed Concern in markets over planned November meeting of oil ministers, U.N.’s decision to increase Iraq’s production cap, reported increase in crude stockpiles by The Associated Press
Crude oil futures settled lower for a third straight day in directionless trading on the New York Mercantile Exchange, while unleaded gasoline prices were sharply lower.
Traders said Oct. 6 that investors are at odds over where the market is headed in coming months.
There is concern in the market about a planned November meeting of the oil ministers of Mexico, Venezuela and Saudi Arabia, analysts said. The ministers are expected to discuss whether to maintain current production levels past March.
Production cuts have helped crude oil prices more than double from 12-year lows reached in December.
Also weighing on the market is the United Nation’s decision to increase Iraq’s production cap under its food-for-oil program and a $1 million barrel weekly increase in crude stockpiles reported Oct. 5 by the American Petroleum Institute.
Dip may be profit-taking Others say the recent dip in prices is largely due to profit-taking, noting that fundamentals haven’t changed and that the market is bound to improve as the arrival of cold weather marks the beginning of the period of peak oil demand.
Gasoline traders were worried about increasing stores and higher production rates. The API inventory report, which showed U.S. gasoline stores increased last week by 592,000 barrels while refinery capacity increased to 92.5 percent last week from 92 percent the previous week.
November light sweet crude fell 18 cents to $23.27; November heating oil was .18 cent lower at 59.43 a gallon; November unleaded gasoline settled 1.4 cents lower at 65.29 cents a gallon; November natural gas was 1.5 cent lower at $2.601 per 1,000 cubic feet.
In London, North Sea Brent crude fell 17 cents to $22.76 a barrel on the International Petroleum Exchange.
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