Crude In Tight Range Above $92.00 On Black Friday; Libya Crisis Eyed

Crude oil slightly fell on Friday, but remains in a tight range just above the $92.00 level, heading for a third monthly decline, the longest losing streak in almost five years, amid increased supplies in the US, the world’s biggest oil consumer.

Crude barely moved on Thursday as volumes were thinner-than-usual with US markets being closed for the Thanksgiving holiday; volumes will be thin today as well as the US bond and stock markets will witness an early closing on Black Friday.

In the US, the Energy Information Administration report on Wednesday showed that crude stockpiles rose last week to the highest level since 1982 as production increased by 45,000 barrels a day to 8.02 million, the most since January 1989.

Adding to the downside pressures on oil prices was news that OPEC, which supplies about 40% of the world’s oil, will boost crude exports when it meets in Vienna on December 4 as global refineries restart after maintenance; production quota may be kept unchanged.

Hopes that Iranian oil exports will come back to the market also weighs on oil prices. If Tehran follows through on its commitments oil supplies will exceed demand due to a weak global growth outlook, putting downward pressures on oil prices.

Yet the prolonged unrest in Libya keeps supply worries upfront just as winter demand for oil peaks, which may keep prices supported. The country’s oil exports are down to a fraction of capacity as the government is unable to restore order.

- WTI crude oil futures for January is trading around $ 92.19 a barrel after falling $0.11

- Brent futures for January settlement is trading around $ 110.89 a barrel after rising $0.03

- Natural gas is trading at $ 3.932 per cubic feet after rising 0.95%

- Gasoline is trading at $ 2.70 per cubic feet after rising 0.06%

- Heating oil (diesel) is trading at $ 3.0444 a gallon after falling 0.08%