Oil may fall for third consecutive week

07-Jan-11

Oil may fall for a third consecutive week on speculation buying by hedge funds will decline after bullish bets on crude oil rose to the highest level in more than four years in December, as per Bloomberg. More than 50% analysts forecast crude oil will decline through Jan. 14, while 26% predicted prices will rise. Futures may also drop on speculation that supplies will increase in January after falling the most in over 8 years in December. Refiners along the Gulf of Mexico coast lower stockpiles in December to reduce year-end tax liabilities. Crude oil for February delivery has dropped to US$88.4 on the New York Mercantile Exchange. Futures are poised for their steepest weekly decline since the period ended Nov. 19.