Oil prices dropped $1.00 per barrel overnight on profit taking after WTI traded above $55 per barrel. There was no other news other than many economists now stating that $55 oil is hurting demand, but there is a disagreement by how much. Technically the market is still in the uptrend and this drop may well be simply a dip. The US inventory data will be released Wednesday night and is forecast to be similar to last week with crude and gasoline increasing but distillates dropping. If this is the case, then futures prices will probaly rise again.

 

Singapore prices fell $0.65 per barrel on aggressive selling of swaps whilst the physical markets remained extremely quiet at the high numbers. Refining margins still remain at historical highs and traders are still bullish for kerosene heading into winter with Japanese stocks low.

 

Closing prices Monday October 18, 2004:

 

WTI (Nov)                $53.67/bbl            -$1.26/bbl

WTI (Dec)                $52.84/bbl            -$1.13/bbl

Brent (Dec)             $49.03/bbl            -$0.90/bbl

IPE Gasoil              $468.25/t              -$12.25/t = -$1.64/bbl