POST YOUR OIL NEWS, Clips here


"

AP Business Writer
Published: August 27, 2008

NEW YORK (AP) - Oil prices are rising after the government reported that U.S. crude supplies fell unexpectedly last week.
The Energy Information Administration says crude stockpiles fell slightly by 100,000 barrels to 305.8 million barrels for the week ending Aug. 22. That compared to the 1.5 million barrel increase forecast by analysts surveyed by Platts, an energy research firm.
The EIA also says gasoline stocks fell less than expected last week, dropping by 1.2 million barrels compared to the 2.8 million barrels analysts expected.
Supplies of distillates, which includes heating oil and diesel, were flat at 132.1 million barrels.
Light, sweet crude for October delivery is up $2.82 at $119.09 a barrel in morning trading on the New York Mercantile Exchange.


http://www.wsls.com/sls/business/consumer/article/oil_prices_rises_after_crude_supplies_fall_unexpectedly/16380/

Oil prices rise as Gustav threat looms
29 August 2008
LONDON (AFP) Oil prices rebounded on Friday as Tropical Storm Gustav risked becoming a hurricane once more and threatening energy production in the Gulf of Mexico, home to US refineries.

New York's main contract, light sweet crude for delivery in October, jumped 1.40 dollars to 116.99 dollars per barrel in electronic deals.

London's Brent North Sea crude for October gained 1.15 dollars to 115.32 dollars per barrel.

British oil groups BP and Shell and US rival ConocoPhillips had Thursday evacuated workers from their energy installations in the Gulf of Mexico, as Gustav loomed.

ExxonMobil said it was preparing for the storm and "identifying personnel for possible evacuation to shore."

About a quarter of US crude oil installations are located in the Gulf of Mexico.

Oil prices had fallen sharply on Thursday as traders discounted the threat of the storm. But on Friday, Newedge energy analyst Ken Hasegawa warned: "Still we have to worry about the hurricane's effect on this market."

Tropical Storm Gustav battered Jamaica on Friday, dumping rain and ripping roofs off homes and threatened to grow into a hurricane after leaving 59 people dead in Haiti and the Dominican Republic.

Anxiety also grew on the US Gulf Coast on the third anniversary of Hurricane Katrina and authorities in New Orleans were planning a possible mandatory evacuation to prevent a repeat of the devastation and deaths wreaked earlier.

Authorities in Louisiana and Mississippi have already declared states of emergency before Gustav's expected landfall late Monday as a hurricane.

Gustav had made landfall in Haiti on Tuesday as a Category One hurricane -- the lowest on the five-level Saffir-Simpson scale -- before weakening into a tropical storm.

Meanwhile, the eighth tropical storm of the hurricane season, dubbed Hanna, was churning in the Atlantic on Friday and has the potential to become a hurricane.

Informative map that BA, have you got one of where the rigs are please?

Afraid not, Stan, but the route will cut through probably the majority of the Golf Coast fields. They're no doubt downmanned by now

OK thanks, lets hope the damn thing runs out of puff.

MMS information on Gustav - production shut in.

Oil gains over $1 as Gustav shuts U.S. output
Mon 1 Sep 2008, 2:13 GMT

* Oil over $116 as Gustav shuts U.S. Gulf fields, refineries

* Gustav expected to make landfall mid-Monday as Category 3

* Some traders wait to weigh up damage in hurricane's wake (Updates prices, adds details)

By Fayen Wong

PERTH, Sept 1 (Reuters) - Oil prices rose more than $1 on Monday after energy firms in the U.S. Gulf shut down nearly all offshore oil output and a host of flood-prone coastal refineries ahead of Hurricane Gustav, the biggest threat since 2005's devastating Katrina.

But prices pared some bigger earlier gains as traders waited to see whether Gustav would leave lasting damage in its wake after it slams into the Louisiana coast later in the day as a major Category 3 hurricane.

U.S. light crude for October delivery rose $1.11 to $116.57 a barrel by 0303 GMT, having briefly surged above $118 a barrel when the New York Mercantile Exchange (NYMEX) opened for electronic trading several hours earlier than usual.

London Brent crude rose 97 cents to to $115.02.

U.S. RBOB gasoline futures outpaced crude gains to rise 5.08 cents, or 1.8 percent, to $2.9050 per U.S. gallon, as traders feared the refining sector could be harder hit.

But oil prices have still barely recovered from last month's over three-month low of nearly $111, with buyers cautious even after the steep slump from mid-July's record high $147.27.

"This is definitely a dangerous storm but I think most of the market is in a wait-and-see mode, waiting to see (if there are) disruptions to oil facilities and pipeline infrastructure before they make a big move," said Gerard Burg, a commodities analyst at the National Bank of Australia in Melbourne.

"Investors are a lot more cautious now, given the general bearish sentiment in the market."

Energy companies are taking no chances, shutting down more than 96 percent of U.S. Gulf oil production and 82 percent of natural gas output as of Sunday afternoon, the U.S. Minerals Management Service said. The Gulf normally pumps a quarter of all U.S. production and about 15 percent of its domestic natural gas.

At least nine oil refineries with a combined capacity of 2.2 million bpd were shut down and a half-dozen other refineries had reduced throughput because of the storm. [ID:nN31518910]

The shutdown of key infrastructure, including the Henry Hub delivery point and the Louisiana Offshore Oil Port, prompted NYMEX on Sunday to declare force majeure on all delivery obligations under its August and September natural gas futures.

Forecasters predicted Gustav will make landfall west of New Orleans around midday on Monday, with top winds expected to be around 200 kph (125 mph), making it a Category 3 storm on the five-step intensity scale. (See [nN31508750] for more details)

GEOPOLITICS, OPEC IN BACKGROUND

Geopolitical tensions between Russia and the West also lent support to oil prices.

Russia does not want a confrontation with the West but will hit back if attacked, Kremlin leader Dmitry Medvedev said on Sunday, a day before EU leaders meet to draft a response to Moscow's actions in Georgia. [ID:nLV125768]

Russia, the world's largest exporter of natural gas and the second-largest oil exporter, supplies more than a quarter of Europe's gas needs.

Iran's oil minister said on Sunday $100 a barrel was the lowest acceptable price for crude oil. Iran, the second-largest producer in the Organization of Petroleum Exporting Countries, has said the oil market is oversupplied in recent weeks as oil prices have plunged more than $30 a barrel from their peak.

OPEC meets in Vienna on Sept. 9 to discuss output policy but other member nations have not come out and publicly backed Iran. Venezuela and Ecuador said on Friday that they expect the oil exporters group to maintain current output levels.[ID:nN29457783] (Editing by Clarence Fernandez)

Oil price plunges as fears of Gustav devastation recede

By Sean Farrell
Tuesday, 2 September 2008

The price of oil plunged more than $4 yesterday as fears receded that Hurricane Gustav would inflict severe damage on the US oil sector when the storm weakened off the Louisiana coast.


The price of oil had jumped by more than $1 earlier in the day as US offshore production in the Gulf of Mexico was shut down almost entirely ahead of Gustav's expected bombardment of the country's key oil production region.

Gustav weakened to a category two storm as it approached the coast near Port Fourchon, Louisiana, which supports 75 per cent of the Gulf's drilling operations.

US crude fell $4.19 to $111.27 a barrel in afternoon London trading yesterday as concerns about the potential damage from the storm were discounted.

Gustav had been forecast to hit the Gulf as a category four storm in the first test of the country's preparedness since Hurricane Katrina wreaked havoc in 2005. Trade in the United States was shut due to the US Labor Day holiday.

London Brent crude fell $4.31 to $109.74 a barrel.

At least 12.5 per cent of total US refining capacity was shut down ahead of the storm and other plants cut rates. The Louisiana Offshore Oil Port, the only US port capable of offloading the biggest oil tankers, halted all operations.

Hurricanes Katrina and Rita wrecked more than 100 offshore oil platforms and closed many large refineries for months in the region, which houses a quarter of US oil output and 15 per cent of natural gas output.

Nearly two million people fled the Louisiana coast and more than 11 million residents in five American states were threatened by the storm.

Potential upward pressure on the oil price remains. Iran's oil minister said on Sunday that $100 a barrel was the lowest acceptable price for crude. Iran, Opec's second-largest producer, has said the oil market is oversupplied after prices dropped from July's record high of more than $147 a barrel.

5/09/2008

prices held relatively stable Friday, gaining 35 cents on the New York Mercantile Exchange to $106.65 per barrel.

The volatile commodity dropped $3.05 per barrel Thursday, as analysts predict oil will soon fall to less than $100 per barrel.

Heating oil prices fell slightly, down 0.0262 cents to $2.99 per gallon. Reformulated gasoline prices fell 0.0251 cents to $2.6999 per gallon, while natural gas prices rose slightly, up 0.109 cents to $7.46 per million British thermal units.

At the pump, U.S. motorists were paying an average of $3.674 for a gallon of regular, unleaded gasoline, down slightly from Thursday's $3.678, the AAA said. Gasoline prices have fallen from a peak of $4.114 on July 17 but remain well above the price of $2.807 per gallon from a year ago.

Oil surges $2 to near $109 on hurricane threat
Mon 8 Sep 2008, 5:37 GMT

(Reuters) - Oil jumped than $2 to near $109 a barrel on Monday, rebounding from a five-month low on worries that Hurricane Ike would tear through the Gulf of Mexico, and on hopes that a U.S. bailout of its top mortgage lenders would help temper an economic downturn.

Expectations that the Organisation of the Petroleum Exporting Countries (OPEC) ministers would leave agreed output targets unchanged at a meeting on Tuesday also lent support to prices that had slumped 10 percent over the past six sessions.

U.S. light crude for October delivery rose $2.49, or over 2.3 percent, to $108.72 by 0105 GMT, snapping a losing streak that knocked prices to their lowest since April after last week's Hurricane Gustav left most Gulf oil and gas facilities intact.

London Brent crude rose $2.21 to $106.30.

Hurricane Ike weakened to a Category 3 hurricane as it bore down on Cuba on Sunday, but was expected to retain strength, entering the Gulf of Mexico as a severe Category 4 storm, a U.S. Federal Emergency Management Agency official said.

It may threaten Gulf energy rigs that account for a quarter of U.S. oil output and 15 percent of natural gas production. Nearly 80 percent of the Gulf's oil production remains shut in following Hurricane Gustav, and Ike's approach has forced Shell Oil Co. to stop returning workers to its platforms.

"There is a concern these storms could impact refineries and production more significantly than Gustav did and we might see more buying when London opens as investors cover themselves in case of damage," said Gerard Rigby, analyst at Fuel First Consulting in Sydney.

He said the U.S. government's weekend move to bail out mortgage finance companies Fannie Mae and Freddie Mac also lent support, raising hopes that the latest effort to prop up the ailing housing market would help quell the credit market crisis that has pushed economies toward recession.

For more stories on the bail-out click:

A meeting of OPEC on Tuesday could support prices, but many analysts said it was unlikely that the producers' group would cut output to shore up oil prices.

"I don't think there will be any change from the meeting. There might be a lot of talk, especially from Venezuela, about production cuts, but I don't think we will see any," Rigby said.

OPEC is estimated to be pumping 790,000 barrels per day (bpd) above the collective ceiling of 29.67 million bpd for its 12 members with output limits, leaving some room for manoeuvre before it needs to consider any formal cut.

Hurricane Ike may affect oil prices
Wed, 10 Sep 2008 05:06:00 GMT



Texas braces itself for Hurricane Ike after the storm moved through Cuba and onto the Gulf of Mexico, threatening oil-rig operations.

Ike is rated a Category 1 storm strengthened with winds of 130 kph as it moved across the Caribbean. Meteorologists say Ike could muscle up to a Category 3 storm in the warm Gulf waters with winds of up to 178 kph.

Latest forecasts predict Ike's path leads to the middle of the Texas coast, skirting past the Gulf region which produces 25 percent of US oil and 15 percent of its gas. According to predictions, oil futures may decrease by more than $2 a barrel, to below $105.

New Orleans, hit by Hurricane Gustav only a week ago, will be spared a visit by Ike.

Ike charged into eastern Cuba Sunday at 195 kph and left a trail of destruction across the island, barely giving authorities and residents any time to prepare after still trying to pick up the pieces following Gustav's charge across the island.

Electricity grids, buildings and crops were severely damaged and destroyed by Ike and after pelting down 40 centimeters of rain, the storm moved away leaving an aftermath of flooding on Tuesday.

Four fatalities have been reported so far in Cuba because of Ike and 2.6 million people were evacuated ahead of the storm's arrival.

JC/BGH

Oil rebounds on move by OPEC 10/09/2008
From wire reports

NEW YORK After closing Tuesday below $104 a barrel for the first time since early April, oil prices jumped in New York on the OPEC presidents call to stop overproducing and match output to the groups set limits.

The Organization of Petroleum Exporting Countries left its production target unchanged at 28.8 million barrels a day after concluding its meeting in Vienna. Bringing output in line with the limits would lower supplies by 520,000 barrels a day, President Chakib Khelil said.

"Its definitely a defensive measure to keep prices above $100," said Jonathan Kornafel, a director for Asia at Hudson Capital Energy. "They dont want to see us go back to $140 or $150, but they want us over $100. Its a bit of a shock to the market, and thats why were up."

Oil prices rallied after OPECs announcement, rising as much as 1.4 percent to $104.67 in aftermarket trading on the New York Mercantile Exchange.

Prices fell earlier Tuesday, hitting a five-month low of $101.74 in aftermarket trading, as traders bet that Hurricane Ike would miss crucial Gulf Coast oil installations.

Oil bounces above $103, weighing Ike vs dollar
Thu 11 Sep 2008, 5:31 GMT


SINGAPORE - Oil prices bounded above $103 a barrel on Thursday after falling to another five-month low the previous day, drawing support from Hurricane Ike and OPEC's surprise output cut while wary traders watched the U.S. dollar.

The dollar briefly touched a new one-year high against the euro on Thursday but weakened versus the yen, lending a touch of support to a commodities complex that has been battered by the unwinding of the short-dollar/long-commodities trade.

U.S. light crude for October delivery firmed 72 cents to $103.30 a barrel by 0547 GMT, after rallying more than $1 earlier in the session.

That came after it dropped as low as $101.36 a day earlier after the pressure of a rising dollar and concerns about global demand outweighed earlier bullish news that OPEC had agreed to cut output by about 500,000 bpd.

London Brent crude rose 48 cents to $99.45 a barrel.

"While OPEC has certainly drawn a line in the sand around the $100 level, it remains to be seen if the cartel can actually achieve the cuts outlined in the announcement," said Jonathan Kornafel, Asia director at U.S.-based options trader Hudson Capital Energy.

Oil prices have tumbled 30 percent since hitting a record high above $147 a barrel three months ago, a descent barely slowed by a pair of hurricanes whipping through the U.S. Gulf, home to a quarter of U.S. oil production.

Oil companies kept shut almost all U.S. offshore production for a second week and began shutting coastal refineries in Texas as Hurricane Ike headed toward the key U.S. energy hub.

Oil output from the region was less than 5 percent of normal as Ike approached just over a week after Hurricane Gustav spun through the same area.

Combined, Gustav and Ike have reduced Gulf production by 14.1 million barrels of oil, 67.9 billion cubic feet of natural gas, cutting into both fuel and crude oil inventories.

U.S. refinery utilisation plunged to 78.3 percent of total capacity in the week ending September 5, the lowest level since October 2005 when hurricanes Katrina and Rita ravaged Gulf coast refineries, data showed on Wednesday.

Prices also fell on Wednesday after the International Energy Agency cut its world oil demand forecasts for this year and the next as high prices and mounting economic troubles drive consumers and businesses to conserve..

U.S. oil demand is already running about 3.8 percent below last year, according to government data.

NEW YORK (CNNMoney.com) -- Oil prices fell Thursday, testing a 5-month low, as the market remained focused on the stronger dollar and slumping demand but also watched the threat that Hurricane Ike poses to the Texas Gulf Coast.

Crude futures traded down $2.03 at $100.55 a barrel, having been as low as $100.18 earlier.

On Wednesday, U.S. light sweet crude for October delivery settled down 68 cents to $102.58 a barrel, the lowest closing price since April 1.

Oil prices slide to six-month lows under $97
9 hours ago

LONDON (AFP) Oil prices tumbled to six-month lows below 97 dollars on Thursday as the dollar rallied and the likelihood of a sharp global economic slowdown loomed over demand growth, traders said.

Prices had risen earlier in the day as Hurricane Ike headed toward key energy facilities on the southern US coast and after OPEC on Wednesday reduced output to curb falling prices, they said.

Brent North Sea crude for delivery in October dropped to 96.99 dollars a barrel on Thursday -- its lowest level since March 5. It later recovered to 97.30 dollars, down 1.67 dollars from Wednesday's close.

New York's main contract, light sweet crude for October, slid 1.96 dollars to 100.62 dollars.

"Crude oil futures slipped further ... as the market focused on demand concerns and the strengthening dollar," said Sucden analyst Michael Davies.

A strong dollar makes goods, such as oil, priced in the US unit more expensive for foreign buyers, dampening demand. The euro on Thursday slid below 1.39 dollars for the first time in a year on heightened concerns about a weak European economy.

Concerns about oil use in a slowing global economy were meanwhile highlighted by the latest monthly report from the International Energy Agency (IEA), which cut its estimate for demand growth this year by 100,000 barrels per day and for 2009 by 140,000 bpd.

The IEA monthly report, published Wednesday, highlighted shrinking oil demand in North America, saying consumers there were cutting back energy use in response to high prices.

The same day, the US Department of Energy said that stockpiles of distillates, which include heating fuel, had dropped by 1.2 million barrels in the week ended September 5. The consensus forecast was for a bigger decline of 2.2 million barrels.

Distillates are being watched closely by the market ahead of the northern hemisphere winter.

With oil prices falling below 100 dollars this week, the oil producers' group OPEC decided to cut production to prevent a further drop.

"It looks like they are willing to defend 100 dollars (as a floor)," Mike Wittner, an analyst at Societe Generale, commented following OPEC's decision.

Oil prices topped a record 147 dollars in July but have since fallen some 30 percent, dropping below the symbolic 100-dollar mark for the first time in five months on Tuesday.

The Organization of Petroleum Exporting Countries reacted to the fall by cutting its total daily output by 520,000 bpd.

Oil prices had risen in Asian trading on Thursday as Ike strengthened to a Category Two storm in the Gulf of Mexico and headed toward the southern US coast after ravaging Cuba and the Caribbean.

In anticipation of Ike, Anglo-Dutch oil giant Shell evacuated personnel from offshore installations. The bulk of US oil refineries are in the Gulf of Mexico.

Elsewhere, British Prime Minister Gordon Brown confirmed that he would host a summit of oil producer countries and consumers on December 19, warning that the world must move away from the "dictatorship of oil."

Don't forget:

CHICAGO, Sept. 10 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives exchange, has announced that it will extend trading hours for energy futures and options contracts on the CME Globex and ClearPort electronic trading and clearing platforms due to the potential impact of Hurricane Ike on the US Gulf Coast this weekend.

CME Globex and ClearPort trading sessions for energy products only will begin on Sunday, September 14 at 10:00 a.m. (all times in Eastern time) with a 9:30 a.m. pre-open on CME Globex. All trades will be for the Monday, September 15 trade date.

All other products listed on CME Globex will follow their regular trading hours on Sunday.

"After extensive discussions with the energy trading community, including clearing member firms and independent software vendors, CME Group is modifying its Sunday trading hours to allow customers access to the markets that may be impacted by Hurricane Ike," said CME Group Chief Operating Officer Bryan Durkin. "Collectively, we recognize the need for the global energy markets to manage their risk during this potentially volatile time and felt this was in the best interest to serve their needs."

SINGAPORE: Oil prices were steady Thursday in Asia below US$106 a barrel as investors weighed supply delays in the Gulf of Mexico against concerns that the U.S. credit crisis will slow global economic growth and hurt crude demand.

Light, sweet crude for November delivery was down 3 cents to US$105.70 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore. The contract fell overnight 88 cents to settle at US$105.73.

About 66 percent of oil production and 61 percent of natural gas output in the Gulf of Mexico remains shut-in after the passage of Hurricane Gustav and Ike, according to the U.S. Minerals Management Service. The Gulf area is home to a quarter of U.S. oil production and 40 percent of refining capacity.

Mexico's state oil company said Tuesday it temporarily reduced oil production because U.S. refineries damaged by Ike have canceled shipment orders.

Petroleos Mexicanos, or Pemex, lowered its daily output by 250,000 barrels a day. The company said it expects production to be back to normal by the end of the week. Pemex produced an average of 2.75 million barrels a day in August, the latest available output figure.

OPEC's decision earlier this month to cut production by 520,000 barrels a day and militant threats to Nigerian oil operations have added to the supply shortage.

Traders are also concerned about the turmoil in the U.S. financial system will impact economic growth and crude demand from the world's biggest economy.

President George W. Bush strongly urged Congress to act quickly to pass a $700 billion financial industry bailout, warning Americans in Wednesday speech that failing to act fast risked dire economic consequences such as disappearing retirement savings, rising foreclosures, lost jobs and closed businesses.

With the administration's original proposal considered dead in Congress, top House leaders issued an upbeat statement late Wednesday saying there was progress toward revised legislation that could pass. Bush summoned presidential candidates Barack Obama, John McCain and legislative leaders to an extraordinary White House summit in hopes of hashing out a deal.

Oil investors are also eyeing the impact the bailout plan may have on the value of the dollar. Investors often buy crude futures as a hedge against a weakening dollar and inflation. The 15-nation euro was steady Thursday at US$1.4721. The dollar was little changed at 105.80 yen.

In other Nymex trading, heating oil futures fell 1.03 cents to US$3.003 a gallon, while gasoline prices rose 1.05 cents to US$2.605 a gallon. Natural gas for October delivery dropped 2.7 cents to US$7.652 per 1,000 cubic feet.

In London, November Brent crude rose 16 cents to US$102.81 a barrel on the ICE Futures exchange.

Oil falls below $94 after dive on financial turmoil
Tue 30 Sep 2008, 6:22 GMT

[-] Text [+] * Oil falls below by more than $2 to below $94

* U.S. lawmakers reject $700 billion bailout

* U.S. Gulf infrastructure still recovering (Updates prices, adds Asian stocks moves)

By Fayen Wong

PERTH, Sept 30 (Reuters) - Oil fell by more than $2.00 a barrel on Tuesday, extending losses after slumping almost 10 percent in the previous session, as fear gripped financial markets in the wake of U.S. lawmakers' shock rejection of a $700 billion rescue plan.

Asian stocks chalked up the biggest monthly decade in more than a decade and Japan's Nikkei share average < .N225> ended down 4.1 percent at a three-year low. Major European markets opened down as much as 2 percent.

U.S. light crude for November delivery fell $2.50 to $93.87 a barrel by 703 GMT, after losing $10.52 on Monday to $96.37 -- the second biggest fall since April 23, 2003.

London Brent crude was down $2.50 at $91.48.

"It was a surprise that Congress rejected the bailout and it's just reinforcing the belief that the U.S. economy is really heading towards a downward spiral. That means the demand side of the equation for oil will deteriorate rapidly," said Toby Hassall, chief analyst at Commodity Warrants Australia in Sydney.

"It's just getting worse and worse and no one knows when this is going to end."

Oil has fallen about 35 percent since its $147 peak in mid-July, amid signs that high energy prices and the U.S. financial crisis have cut into crude demand in the United States and other industrialised nations.

In addition, oil has also been dragged down as investors, who had rushed into commodities earlier this year as a hedge against inflation and the weak dollar, sold crude for safer havens.

The House voted 228-205 to reject the bailout bill, which would have authorized the Treasury Department to purchase broken mortgage-backed bonds from banks with the goal of jump-starting stalled capital markets. [ID:nLT436737]

Analysts said the spread of credit problems to Europe was also stoking fears that the financial turmoil, which started with risky lending to the overheated U.S. property market, had gone rapidly global.

"Slower international economic growth is bound to dent oil demand," said David Moore, a commodities analyst at the Commonwealth Bank of Australia.

Separately, oil and gas production in the Gulf of Mexico continued to increase on Monday as companies brought their facilities back on line after Hurricane Ike, the Minerals Management Service said.

Some 48 percent of U.S. oil production in the Gulf of Mexico and 47.4 percent of the region's natural gas output remained shut, down from 57.4 percent and 52.8 percent respectively on Friday. (Additional reporting by Maryelle Demongeot in Singapore; Editing by Ben Tan)

Oil steady at $93 as market awaits US bailout vote
The Associated PressPublished: October 3, 2008

SINGAPORE: Oil prices were steady above US$93 a barrel Friday in Asia as investors waited to see if a reworked US$700 billion bailout package will pass the U.S. Congress and help stabilize the economy of the world's biggest crude consumer.

Light, sweet crude for November delivery was down 35 cents to US$93.62 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. Prices fell overnight US$4.56 to settle at US$93.97, the lowest level since Sept. 16.

The U.S. House of Representatives is expected to vote later Friday on the bank rescue package after the Senate overwhelmingly approved it Wednesday. House lawmakers stunned investors Monday by rejecting the bailout plan, although the Senate added $100 billion in tax breaks and other sweeteners in a bid to win over enough dissenting House votes.

"Approving the bailout may create a little bounce and alleviate the negative sentiment temporarily," said John Vautrain, an energy analyst with consultancy Purvin & Gertz in Singapore. "The problem is U.S. gasoline demand has been off one heck of a lot."

Statistics from the U.S. Labor Department released Thursday showed more signs of a weakening economy, adding to concerns about falling oil demand.

The Labor Department reported that initial claims for jobless benefits increased by 1,000 to a seasonally adjusted 497,000, significantly above analysts' estimate of 475,000 and a seven-year high.

Also Thursday, the Commerce Department said factory orders in August plunged by 4 percent compared to July, a much steeper decline than the 2.5 percent drop analysts expected and the biggest setback since a 4.8 percent plunge in October 2006.

"All the indicators have been very negative," Vautrain said. "There's been an economic wallop, and people don't have as much money to spend."

Significant gains over the past days by the dollar against the euro have also helped push down prices. Investors tend to buy commodities like oil to defend against dollar weakness and a hedge against inflation, but return to the U.S. currency as it strengthens.

The 15-nation euro rose to US$1.3863 in trading Friday while the dollar was little changed at 105.06 yen.

In other Nymex trading, heating oil futures fell 0.4 cents to US$2.71 a gallon, while gasoline prices dropped 2.5 cents to US$2.23 a gallon. Natural gas for November delivery fell 8.0 cents to US$7.40 per 1,000 cubic feet.

In London, November Brent crude fell 43 cents to US$90.13 a barrel on the ICE Futures exchange.