China's weak demand forecast, ailing US automobile sales and weak manufacturing activity posted by American manufacturers led to a dip in crude oil prices on Tuesday. After trading above US$69/barrel in Asian trade Monday, light sweet crude for December delivery slid US$3.87/barrel to stand at US$63.91/barrel. On the New York Mercantile Exchange electronic trading, light sweet crude for next month delivery fell 66 cents to US$63/barrel in Singapore. In London, Brent crude for December delivery dropped to poise at US$59.6 on the ICE Futures exchange after declining by US$4.84/barrel from Monday's price. Considering the weakening crude scenario, Venezuela's Oil Minister has urged OPEC members (who control around 40% of global oil production) a further 1 mln bpd cut in oil production over and above the first curtailment of 1.5 mln bpd. Even though the earlier announcement of a production curtailment received a considerable conformity from members, it remains to be seen how well the next output cut will be received. The Institute for Supply Management said the US manufacturing index fell to sub-40 levels, the worst reading in more than a quarter century. In addition, Credit Suisse reduced its China oil consumption growth projection to almost nil from 4% due to sluggish economic outlook.
04-Nov-08 
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