Oil Slides With Ample Supplies in Storage for Winter Demand - Bloomberg

Nov. 26 (Bloomberg) -- Oil fell in New York on speculationthat inventories at a four-week high will be adequate to meetU.S. fuel demand this winter.

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Crude stockpiles increased to 337.8 million barrels in theweek ended Nov. 20 and distillate inventories, which includeheating oil and diesel, were 26 percent above the five-yearaverage, the Energy Department said in a report yesterday. Astrengthening dollar also pushed crude prices lower. A strongerdollar reduces demand for commodities as a currency hedge. “On the fundamental side, it’s not justified for oilprices to go higher,” said Gerrit Zambo , a trader withBayerische Landesbank in Munich. “Even with a cold winter therewouldn’t be any problem with supply as storage is so full anddemand isn’t as high as two years ago.” Crude oil for January delivery fell $1.73, or 1.7 percent,to $76.23 a barrel in electronic trading on the New YorkMercantile Exchange at 1:14 p.m. The contract fell as low as$76.05. Futures have gained 71 percent this year and climbed 2.6percent yesterday as the U.S. currency slumped.

Full Story: Oil Slides With Ample Supplies in Storage for Winter Demand - Bloomberg