CRUDE oil prices fell from its highest in more than two weeks in New York before a government vote in Slovakia on the euro area's bailout fund that may endanger a recovery in the region's economy.Crude for November delivery on the New York Mercantile Exchange fell as much as $1.14 to $84.27 a barrel and was at $84.66 at 1:06 p.m. London time. The contract yesterday gained 2.9 per cent to $85.41, the highest close since September 21. Prices are down 5.4 per cent this year.Brent oil for November settlement declined 0.5 per cent to $108.42 on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $23.46 to New York crude, compared with a record of $26.87 on September 6.Futures slipped as much as 1.3 per cent and European equities fell after European Central Bank (ECB) President, Jean-Claude Trichet, said the region's debt crisis has 'reached a systemic dimension.'Crude climbed 2.9 per cent yesterday after German Chancellor Angela Merkel and French President Nicholas Sarkozy said they will deliver a plan to recapitalize the region's banks by November 3. An Energy Department report October 13 may show U.S. crude supplies rose last week.'Oil is on the weaker side on somewhat weaker equities,' said Eugen Weinberg, the Frankfurt-based head of commodities research at Commerzbank AG. 'There is probably also some profit-taking after strong gains yesterday, when comments from Sarkozy and Merkel showed light at the end of the tunnel for the euro zone.'The benchmark Stoxx Europe 600 Index lost 0.6 per cent to 234.47 as of 1:08 p.m. in London. Slovak Prime Minister Iveta Radicova is seeking to pressure rebel lawmakers by tying the European Financial Stability Facility ratification to a no- confidence motion, after coalition partners failed to come up with a last-minute resolution to a Cabinet dispute.Parliament was due to begin debate at 1 p.m. local time, with a vote scheduled for sometime later.Trichet, also head of the European Systemic Risk Board, said today that the debt crisis now threatens the region's financial system.'Sovereign stress has moved from smaller economies to some of the larger countries,' he told lawmakers in Brussels. 'The crisis is systemic and must be tackled decisively.'U.S. crude oil stockpiles probably rose by one million barrels last week, according to the median of nine analyst estimates in a Bloomberg News survey before a weekly Energy Department report on October 13. The department is releasing the data a day later than usual because of yesterday's Columbus Day holiday.London-traded Brent may fall toward $90 a barrel as Libya resumes oil production amid lower demand, according to a report by Sanford C. Bernstein & Co.Oil stocks will rise and the need for crude from the Organisation of Petroleum Exporting Countries (OPEC) will fall, driving Brent lower as spare capacity increases and demand moderates, London-based oil analyst Oswald Clint said in a report.
Click here to read full news..
