Oil declined in New York after most U.S. equities fell, signaling a recovery in fuel demand in the world’s biggest crude consuming nation may falter.
Futures gave up yesterday’s 0.3% gain after about five stocks dropped for every four that advanced on U.S. exchanges. Crude supplies surged 5.01 million barrels to 366.2 million in the week ended Oct. 22, the biggest increase since July, an Oct. 27 Energy Department report showed.
“The markets are wildly choppy,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. “Oil traders are looking at the dollar and stocks for direction. We will have to wait for the fundamentals to improve before prices can move much higher.”
The December contract slipped as much as $.32, or 0.4%, to $81.86 a barrel in electronic trading on the New York Mercantile Exchange, and was at $81.94 at 9:46 a.m. Sydney time. Yesterday it climbed 24 cents to $82.18. Prices are up 0.3% this week and 2.5 percent higher for the month. Crude has added 3.3% this year.
Oil gained yesterday after the dollar tumbled against most major currencies amid speculation that the Federal Reserve will curb the greenback’s value by buying government debt. A weaker U.S. currency boosts investor demand for raw materials.
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