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Crude Oil Prices Fell From Record Level

October 19, 2009 at 19:38 by Vladimir Vyun

Crude oil fell from its highest level in a year on speculation that inventories are too high to justify the increase in prices. Previously prices reached a record $79.05 per barrel, the highest since October 15th, 2008. The record prices were supported by rising equities, signaling that an economic recovery will increase fuel consumption, and advancing industrial production in the U.S.

An analyst and broker at Tradition Energy said that buyers are “watching for signs of rising production rates and declines in gasoline inventories.” Until they get inventory figures for this week, the market will be following the equities and the dollar. An analyst at Nordea Bank AB predicted that oil prices likely aren’t going “to cross $80 a barrel and stay there.” Optimism from equities supports the oil market, but still it is required some increase on the demand side before the oil rise above $80.

November delivery for crude oil slid $0.14 to $78.39 per barrel by 9:30 a.m. on the New York Mercantile Exchange. December settlement for Brent crude oil fell $0.08 to $76.91 per barrel on the London-based ICE Futures Europe exchange.

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