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Crude takes tumble for sixth straight day
13.01.09
Rising stockpiles have outweighed fighting in the Middle East in the oil markets, with crude prices falling for a sixth consecutive day.
New York crude was down 72 cents to $36.87 and Brent was off 39 cents to $42.52 today after a 7.9% slump yesterday. An Energy Department report tomorrow is expected to show US crude stockpiles rose by 2.25 million barrels in the week ended 9 January.
Oil for February delivery is now at a 35% discount to the December future. US refineries have reduced operating rates as the recession curbs consumption. Petrol stockpiles probably rose 1.5 million barrels from 211.4 million, according to a survey, while those of distillate fuel, including heating oil and diesel, are estimated to have risen by 1.5 million barrels from 137.8 million.
Goldman Sachs said last week that “weak underlying economic fundamentals” will dominate the oil market. The bank maintained a forecast that oil will fall to $30 a barrel this quarter.
Neither Opec output cuts nor Israel's assault on Gaza have had much effect on sliding prices.
