Oil prices continue slide on eased supply concerns

Oil prices continue slide on eased supply concerns

New York (Platts)--15Nov2004


Oil prices continued to decline Monday on the back of an apparent easing of
any lingering concerns over crude oil supplies, and with a sign of some
movement on the potential re-escalation of Nigerian labor strife. At just
after noon East Coast US time, December crude oil on NYMEX was trading at
$46.05/bbl, down $1.27 from Friday's close, while Brent crude futures on IPE
were at $40.35/bbl, down $1.96 on the day. Futures market sources indicated
the declines were due in part to signs that there was no shortage of sweet
grades for delivery. Continuing to put downward pressure on crude and product
prices have been recent solid builds in US oil stocks. In Nigeria, the
government announced it would boost gasoline and diesel subsidies in a move to
reduce pump prices. The action was seen as a bid to avert a general strike
planned to resume on Tuesday. There was no immediate indication that the
latest action by the government would lead to a suspension of the strike
threat.

A report earlier Monday by investment banking firm Barclays Capital noted that
the breaching of the $46.75/bbl support level could signal "a further
substantial downward move," and the markets appeared to be bearing out that
judgment. On the products side, NYMEX December heating oil was down 3.86 cts
on the day to $1.325/gal, while the gasoline contract was down 3.49 cts to
$1.222/gal in early afternoon trading.

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