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Oil falls below 90 dollars a barrel
SINGAPORE
Petroleumworld.com 10 31 07Oil fell below 90 dollars in Asian trade Wednesday as investors took profit on expectations of an increase in US crude stocks, dealers said.
New York's main contract, light sweet crude for December delivery, was 1.06 dollars lower at 89.32 dollars a barrel from its close of 90.38 in US trades Tuesday. It had touched an all-time high of 93.80 dollars on Monday.
Brent North Sea crude for December delivery dropped 90 cents to 86.54. On Monday it had hit an all-time peak of 90.49 dollars in intraday trade.
Steve Rowles, an analyst with CFC Seymour Securities in Hong Kong, said market expectation that US crude inventories will rise led investors to profit-taking following a string of record high prices.
The analyst consensus forecast is for a 400,000-barrel increase in crude reserves for the week ended October 26. US stockpiles are closely watched because the United States is the world's biggest energy consumer.
The current price level "does makes a lot of sense," Rowles said. "Below 90 dollars seems to be a lot more rational and more comfortable for everybody."
Concerns over possible supply disruptions from nothern Iraqi oilfields sparked by Turkish military threats against Kurdish rebels have eased amid diplomatic efforts to cool down tensions, he said.
"Overall, I think the supply-side issue is not as big a concern anymore," he said.
Worries that a Turkish offensive against Kurdish rebels in northern Iraq will disrupt oil supplies had been a catalyst for oil prices pushing above 93 dollars a barrel.
Several Iraqi oilfields are located in northern Iraq.
US Secretary of State Condoleezza Rice will make a side trip to Turkey during her Middle East visit this week to help calm tensions between Ankara and its neighbour Iraq.
Story from AFP 31 0435 GMT 10 07
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