NEW YORK Oct 1 U.S. crude oil futures tumbled
on Monday, extending Friday's end-of-quarter losses in what
analysts called a technical correction after the recent record
run-up and as November products futures also fell sharply.
"Although tight product supplies may temper the selling in
crude oil, the market still appears to be technically
overbought, so there should be follow-through selling this
session, particularly if the dollar holds," John Kilduff, senior
vice president at MF Global, wrote in a research note.
The waning threat of storm disruptions, after the most
recent storm, Lorenzo, failed to hamper oil operations in
Mexico, also was cited as a factor pressuring prices.
On the New York Mercantile Exchange at 12:36 p.m. EDT (1636
GMT), November crude CLX7 was down $1.79 or 2.19 percent at
$79.87 per barrel, trading as low as $79.67, the lowest level
since $78.44 on Sept. 26, and as high as $82.02.
Crude hit a NYMEX record high $83.90 on Sept. 20.
Support on Monday charted at $80.00 gave way early, with
crude slumping below the $81.51 10-day moving average and just
below the 20-day moving average at $79.71. Monday's early peak
was 2 cents above resistance charted at $82.
In London, November Brent crude LCOX7 was down $1.97 or
2.49 percent at $77.20 a barrel, trading $76.59 to $79.54.
Refined products futures fell sharply. NYMEX November
heating oil HOX7 was down 5.76 cents or 2.59 percent at
$2.1680 per gallon, trading from $2.1633 to $2.2399. The
November contract fell 2 percent on Friday.
November RBOB RBX7 was down 6.12 cents or 3.0 percent at
$1.9799 a gallon, trading from $1.9750 to $2.0524.
The U.S. dollar lifted crude futures recently by attracting
flows from investors looking for alternatives to the U.S.
currency at record lows. Rising crude prices have shielded
producers from losses on petrodollars used to buy crude oil.
The dollar rose slightly from record lows against the euro
on Monday as investors cashed out bets against the U.S.
currency ahead of a fresh batch of economic data and central
bank meetings this week. [ID:nN01213955]
The dollar pared some gains after a measure of September
U.S. manufacturing activity hit its lowest level since March,
but the gauge's employment measure registered growth ahead of
Friday's payrolls data that will be closely watched.
Qatar's oil minister, Abdullah al-Attiyah, told Reuters on
Monday that more crude supply from the Organization of Petroleum
Exporting Countries would do little to ease $80 oil as
speculative investment flowing into the market from other assets
was boosting the price. [ID:nL0146074]