Oil prices decline to levels below US$58 a barrel

03-Nov-06

As the market focused on rising crude oil inventories in USA and waited for signs of OPEC's recently announced output cut, Oil prices declined to US$58. Light sweet crude for December delivery on the New York Mercantile Exchange settled at US$57.88 a barrel. In London, December Brent crude futures on London's ICE Futures exchange dropped to US$57.87 a barrel. Some pressure on prices is being exerted on account of this week's soft U.S. economic data indicating that October growth was its slowest monthly pace in three years. Soft economic data suggests energy demand could weaken. The 11 members of the Organization of Petroleum Exporting Countries are yet to show action supporting OPEC's announcement to cut output by 1.2 mln bpd.