Crude oil futures fall sharply

The Associated Press

Crude futures prices fell sharply Oct. 27, falling below $54 a barrel, as traders shelved concerns about tight winter-fuel supplies and focused on government data showing faster-than-expected growth in U.S. oil inventories.

“The market looks like it’s ready to fall hard and fast,” said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York.

Oil prices initially rose after the Energy Department reported a steep decline in U.S. inventories of distillate, which includes heating oil. But Silliere said the market had already priced in the six-week decline in heating oil supplies and was now anticipating that the refining industry would sharply boost production ahead of the Northern Hemisphere winter. Crude for December delivery was down $1.52 to $53.65 a barrel on the New York Mercantile Exchange. The record settlement price of $55.17 was reached Oct. 22 and matched Oct. 26.