Crude oil fell after a report showed that the U.S. economy grew at a slower level than previously estimated, and on forecasts that supplies gained. Oil retreated after the Commerce Department said that the economy expanded at a 2.8 percent annual rate in the third quarter, down from a 3.5 percent increase initially stated. The U.S. Energy Department will probably report tomorrow that crude oil supplies grew by 1.5 million barrels in the week ended Nov. 20, according to a Bloomberg News survey. “As long as there are tepid headlines about the economy, oil is going to be under pressure,” said Michael Fitzpatrick, vice president of energy with MF Global in New York. “We seem to be attracted to the lower end of the recent range and will probably test it before long.”
Crude oil for January delivery declined $1.48, or 1.9 percent, to $76.08 a barrel at 10:59 a.m. on the New York Mercantile Exchange. Futures have gained 71 percent this year. Transactions may be lighter than normal because of this week’s U.S. Thanksgiving holiday. There will be no trading on Nov. 26 and floor trading will end early on Nov. 27. “I’m not getting excited about anything I see this week as far as price action is concerned,” said Stephen Schork, president of consultant Schork Group Inc. in Villanova, Pennsylvania. “Volume and liquidity are down, so volatility is going to be through the roof”.....Read the entire article.
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