Crude oil fell for a fifth day on expectations surging fuel imports will help compensate for reduced production caused by hurricanes in the Gulf of Mexico.
U.S. gasoline imports surged 18 percent to 1.4 million barrels a day last week, the highest in at least 19 years, the Energy Department said yesterday. Total fuel consumption in the four weeks ended Sept. 30 was 2.9 percent lower than a year earlier. Gulf oil production yesterday rose to 13 percent of pre-hurricane levels, the Minerals Management Service said.
``The demand numbers suggest people may be getting a little bit scared off by high prices,'' said David Thurtell, commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. ``Gulf production is coming back slowly.''
Crude oil for November delivery fell as much as 39 cents, or 0.6 percent, to $62.40 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $62.45 at 8:38 a.m. in Sydney, 20 percent higher than a year ago.
Yesterday, the November contract fell $1.11, or 1.7 percent, to $62.79 a barrel, the lowest close for the contract nearest expiry since Aug. 5. Prices have declined 12 percent since touching a record $70.85 a barrel on Aug. 30.
Yesterday's slide in prices accelerated after the Minerals Management Service reported that Gulf oil companies restored another 50,000 barrels of daily production. Output shut in by Hurricanes Katrina and Rita totaled 1.3 million barrels a day yesterday, or 87 percent of pre-hurricane levels.
Gasoline for November delivery plunged 10.79 cents, or 5.4 percent, to $1.9078 a gallon in New York, the lowest close since Sept. 16. It was at $1.8880 in after-hours trading.
Heating oil for November delivery fell 3.49 cents, or 1.7 percent, to $2.0148 a gallon, the lowest close since Sept. 23. It was at $1.9950 in after-hours trading.
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