November 2, 2004
SOROS SELLS OFF:
Crude prices fall to near $50 a barrel: Drop fueled by rise in US supply, easing of heating oil fears (Brad Foss, November 2, 2004, Associated Press)
Oil futures prices sank to their lowest level in nearly a month yesterday on a continuation of the sell-off sparked last week by rising US supplies of crude and easing fears about the refining industry's ability to satisfy heating oil demand. [...]
December crude futures declined by $1.63 to settle at $50.13 per barrel on the New York Mercantile Exchange -- the lowest closing price since Oct. 4, when futures settled at $49.91 per barrel. Prices had fallen as low as $49.30 a barrel in intraday trade. In London, December Brent crude futures fell $1.92 to $47.06 per barrel.
''We could move a couple of bucks more on the downside," said BNP Paribas Futures trader Tom Bentz. Bentz added that worldwide oil supplies remain tight and therefore, ''I'd be a little cautious" about declaring the beginning of the end of high prices. ''The reality is that not a lot has changed fundamentally," he said.
If the market was following fundamentals, rather than psychology and chicanery, it would be under $40. Posted by Orrin Judd at November 2, 2004 8:33 AM