Reply #16: Oil Heads for First Two-Month Drop This Year; Supplies Increase [View All]

[Mojorabbit]

Oct. 31 (Bloomberg) -- Crude oil fell, headed for its first two-month decline in New York this year, as production recovers and supplies build with the U.S. hurricane season nearing an end.

The Organization of Petroleum Exporting Countries yesterday said there have been no buyers for the extra oil it began offering on Oct. 1. Crude has fallen about $10, or 15 percent, from a record $70.85 a barrel on Aug. 30, a day after Hurricane Katrina shut 95 percent of U.S. production in the Gulf of Mexico.

``The hurricane froth has been taken out of the market,'' said Peter Luxton, an analyst with Informa Global Markets in London. ``There's no need for OPEC to raise output. There's a view that there's plenty of supply around and the anxiety that distillates might not be adequate may prove overdone.''