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Oil prices fall after US superstorm

Thursday, November 01 15:08:32

European oil futures fell today as investors continued to analyse the aftermath of super storm Sandy, while U.S. futures gained as U.S. markets geared back up after the severe battering to the east coast delivered by Sandy.

The destruction wrought by the massive storm affected millions of people across the eastern United States and could dampen fuel demand just as the world's largest economy was showing signs of recovery, analysts said.

Crude oil demand expectations were bearish, but the outlook for middle distillates was more bullish with the outages coming at a time of increased demand for the winter season. "Many refineries are still out or with low runs so a build in crude oil inventories is expected next week and a draw on diesel, heating oil with gasoline moving sideways because no cars are moving," said Michael Poulsen, oil analyst at Global Risk Management in Copenhagen.

Investors also kept to the sidelines on an uncertain political outlook in the world's two largest oil consumers as Americans head to the polls for the presidential elections next week and new top Chinese leaders take over.

Oil prices could continue trading sideways ahead of the U.S. elections just six days away, analysts said.

Brent crude for December delivery fell 38 cents to $108.32 a barrel by 1015 GMT. The front-month contract slipped for a second straight month in October on ample crude supply and worries about lower fuel demand as the global economy slows.

U.S. crude for December delivery was at $86.37 a barrel, up 13 cents. (C ) Reuters