The Oil prices have declined to $85, every day since crude prices rose to a record above $90 a barrel last week. The oil prices went high last week because of the Concerns about a disruption in Iraq. Oil prices dropped further Wednesday ahead of the release of weekly U.S. fuel data expected to show crude stocks rose last week.
Analysts surveyed by Dow Jones Newswires on average predict crude inventories rose 300,000 barrels during the week ended. However, estimates vary widely, ranging from an increase of 2 million barrels to a decrease of 2 million barrels. Analysts also predict the EIA report will show refinery utilization rose 0.3 percentage points; gasoline supplies, still near record lows, rose 1.1 million barrels; and distillate stockpiles, which include heating oil and diesel, rose 200,000 barrels.
Light, sweet crude for December delivery fell 75 cents to settle at $85.27 on the New York Mercantile Exchange. December Brent crude declined 8 cents to $82.77 a barrel on the ICE futures exchange in London. Heating oil futures rose 0.02 cent to $2.30 a gallon while gasoline prices fell 0.04 cent to $2.1085 a gallon. November natural gas fell 13 cents to settle at $6.761 per 1,000 cubic feet. Gasoline supplies, still near record lows, likely rose 1.1 million barrels, and distillate stockpiles, which include heating oil and diesel, likely rose by 200,000 barrels.
Although oil keeps fluctuating, as seen it showed a record high last week and suddenly dropped by Wednesday. If this continues the oil prices will go down to a record level in not more than few days.
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