Oil slides towards US$81

SINGAPORE – Oil prices fell towards US$81 a barrel on Friday, as sellers emerged after a record above $84 the previous day when a tropical depression forced the shutdown of Gulf of Mexico output ahead of peak winter fuel demand.

US crude for November delivery, the new front-month dipped 35 cents to US$81,43 a barrel by 0823 GMT, after the October contract expired up US$1,39 at US$83,32 on Thursday, when it hit a record for the seventh-straight session of US$84,10. London Brent November crude edged down 28 cents to US$78,81, after 62-cent gains on Thursday.”It’s more a matter of when speculators want to take profit, or if Opec announce another production increase.Otherwise, I can’t see a reason for prices to fall,” said Gerard Rigby from Fuel First Consulting in Sydney.Oil has traded above US$80 for the past week, despite Opec’s decision last week to raise output from November, on thinning US inventories, a weakening dollar, a US interest rate cut that eased fears of a recession and on storm risks.Energy companies have shut more than 360 100 barrels per day (bpd) of Gulf of Mexico output, or over a quarter of the Gulf’s crude production, and 16,7 per cent of natural gas production as a tropical depression blew into the Gulf.Nampa-ReutersLondon Brent November crude edged down 28 cents to US$78,81, after 62-cent gains on Thursday.”It’s more a matter of when speculators want to take profit, or if Opec announce another production increase.Otherwise, I can’t see a reason for prices to fall,” said Gerard Rigby from Fuel First Consulting in Sydney.Oil has traded above US$80 for the past week, despite Opec’s decision last week to raise output from November, on thinning US inventories, a weakening dollar, a US interest rate cut that eased fears of a recession and on storm risks.Energy companies have shut more than 360 100 barrels per day (bpd) of Gulf of Mexico output, or over a quarter of the Gulf’s crude production, and 16,7 per cent of natural gas production as a tropical depression blew into the Gulf.Nampa-Reuters