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Tuesday November 16, 07:38
Oil falls as imports grow
(by Mark Riley)

Oil falls as imports grow

Oil prices fell in the U.S. on unexpected comforting news that rising imports will contribute to heating oil production in winter.

December crude oil dropped 34 cents, or 0.7%, to $46.53 per barrel in after-hours electronic trading on the New York Mercantile Exchange.

U.S. crude oil inventories probably rose last week for an eighth week, analysts forecast shows. Stockpiles may have added 1.75 million barrels to the previous 291.5 million.

``The inventory numbers, and whether we see some builds in products, is going to be the real focus of the market. I don’t see why we couldn’t get down into the $42 to $44 range,’’ said Steve Taylor, a trader with New West Petroleum Inc. in Sacramento, California.

Weather forecasts are quite optimistic as this winter is expected to be warmer as compared with the previous winter. ``It’s not as cold as it was last year in the northern states and that will reduce demand, and give refiners time to continue to build up heating oil supplies,’’ said Wei Yu Chen, senior trading analyst at Axis Trading Co. in Beverly Hills, California.

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