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[Kizen]

Oil fell below $59 a barrel on Monday as traders doubted all OPEC members would follow Saudi Arabia's lead to curb output under an agreement reached last week.

Top world oil exporter Saudi Arabia has informed Asian and US customers it will cut output by 380,000 barrels per day from November 1, following an OPEC deal. But OPEC ministers' lack of unity on how to implement the cuts before the talks has left uncertainty in traders' minds on how the group will implement the curbs.

The market is highly skeptical that OPEC will deliver the promised cuts in crude oil production. This will give some relief to the markets but this is temporary action from the OPEC members and they never ready to sacrifice their profits in future too.

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[patanx]

Crude oil fell as traders and analysts speculated that supplies will increase in the U.S., the world's largest consumer, amid forecasts that temperatures will be milder than usual next month.

In the U.S. Northeast, where consumers use most of the nation's heating oil, temperatures will be above average in November before falling below average in December and January, forecaster WSI Corp. said yesterday. A report tomorrow will probably show oil stockpiles in the U.S. grew a fourth week, according to analysts surveyed.

Crude oil for December delivery fell as much as 39 cents, or 0.7%, to $58.42 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract traded at $58.63 at 1:56 p.m. in London. Futures have plunged 25% from the record of $78.40 a barrel reached July 14.

Brent crude for December settlement was down 19 cents at $59.02 a barrel on the ICE Futures exchange in London.
World oil demand peaks in the fourth quarter when refiners prepare heating fuel for the northern hemisphere winter.

Crude oil supplies probably gained 2.9 million barrels last week, based on the median estimate from a of 10 analysts before the U.S. Energy Department report Oct. 25. Distillate supplies may have dropped by 1.25 million barrels as refining remained near a six-month low, according to the survey.

U.S. oil stockpiles held 335.5 million barrels on Oct. 13, or 14% more than the five-year average for the period. Supplies of distillates, including heating oil and diesel, were 145.4 million barrels, 15% more than average.

Rising stockpiles prompted the Organization of Petroleum Exporting Countries to agree on Oct. 19 to cut daily production by 1.2 million barrels from Nov. 1 to stem the slide in prices. Saudi Arabia, the group's biggest producer, will trim output by 380,000 barrels a day.

The OPEC crude oil basket price fell 71 cents to $54.56 a barrel on Oct. 19, the latest available data. The daily price index is a weighted average of 11 crude blends produced by OPEC states.

[sunabeach]

And today (Tuesday) Crude was up over $1.

So what.

Its the long term trend that counts. Not what happens today, tomorrow or the next day. Whats with the daily news bulletins. We all have access to this on the net and some of us even have live data.