Crude Oil Declines on Rising U.S. Inventories, Stronger Dollar

Oil fell in New York as traders sold contracts to lock in gains ahead of the U.S. Thanksgiving holiday and after the U.S. Energy Department said crude inventories held by the world’s largest energy consumer rose. Oil also pulled back after rallying 2.6 percent yesterday, the most since Nov. 16, as the dollar retraced some of its losses against the euro. Commercially held U.S. stockpiles rose to a four week high of 337.8 million barrels in the week to Nov. 20, renewing concern over the pace of recovery in fuel demand.

“We can expect some profit taking selling after last night’s sharp gains led by gold and the euro,” said Ken Hasegawa, a commodity derivatives sales manager at Newedge in Tokyo. “It’s possible to go as low as $76.50, that’s the level before it started rising yesterday.”

Crude oil for January delivery fell as much as 56 cents, or 0.7 percent, to $77.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $77.55 a barrel at 11:20 a.m. Singapore time. Yesterday, it rose $1.94 to $77.96 a barrel. Futures have gained 74 percent this year. Floor trading in New York will be suspended today because of Thanksgiving. The exchange will close early tomorrow, while electronic trading will continue through the holiday.....Read the entire article.

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Oil Falls for Second Day on Doubts Over Pace of Demand Recovery

Crude oil fell for a second day as higher U.S. fuel stockpiles raised concern gains in prices may have outpaced the recovery in the global economy. Oil slipped to its lowest in nearly a week before a report tomorrow in the U.S., the world’s largest energy consumer, which may show retail spending barely changed in August if gasoline and autos were excluded. The country’s stockpiles of distillate have climbed to their highest levels since 1983, according to Energy Department data last week. “Crude oil is just following weak fundamentals,” said Ken Hasegawa, a commodity derivative sales manager at broker Newedge in Tokyo. “If the price goes down below $68, then it’s possible to go down to $66”.....Read the entire story