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Crude Oil slips on light volumes, Exxon, EnCana, Murphy Oil all retreat

Published: 06:05 22 Sep 2009 AEST

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With Japan, Singapore and India closed today due to public holidays, the absence of the majority of Asian oil traders saw crude oil prices drop almost 2½% overnight on relatively light volume. In Europe traders and investors were unable to support the price as the US dollar continues its tentative short term recovery from the end of last week. Weaker equity markets have also been a drag on commodity prices this morning. The Dow Jones Industrial Average losing almost 1% this morning, while the S&P500 is down three quarters of a percent.


Since traders in New York and Chicago joined the market the crude oil price has slipped a further 2%.


November WTI (West Texas Intermediary) crude oil futures have steadily fallen for most of the morning, dropping from $72.20 to trade below $69.60 this morning.

Recent weeks have seen crude oil prices remain range bound generally between $68 and $72, with high US stockpiles and muted demand growth capping this year’s resurgent oil markets. Crude oil has rallied over 60% this year following the spectacular fall from its all time high in 2008.

Some recent reports suggest that analysts are pointing to bearish fundamentals for a breakout to the downside.
Fundamental indicators cited include a 14% rise in stockpiles, and weakening US demand during the seasonal slump between ‘Driving season’ and the North American winter.

While other reports simply state that crude prices will merely trade in the current range throughout October unless a major event or substantial changes to current fundamental projections occur.


Wall Streets major oil producers have generally followed commodity prices, with Exxon Mobil (NYSE: XOM) falling 60c earlier today losing almost 1%. While Chevron (NYSE: CVX) dropped more than ½% to trade at $72.20.


NYSE listed Murphy Oil Corp (NYSE:MUR) is lost 90c today to fall 1½%, shares in Murphy are currently changing hands at $59.53.


Canadian based multinational operator EnCana (NYSE:ECA & TSX:ECA) have fallen the most among wall streets oil & gas plays slipping more than 2½%, the stock fell $1.50 to trade at $56.32

Meanwhile ConoccoPhillips (NYSE:COP) lost more than 1% having traded between $45.80 and $46.28, Total S.A (NYSE:TOT) rounds up Monday’s fairly negative sector falling 67c, the French Oil Major is currently trading at $60.84 on the New York Stock Exchange.

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