Commodities : Wednesday, Nov. 27, 1985 : Oil Futures Prices Decline
Petroleum futures prices fell sharply Wednesday on the New York Mercantile Exchange following an industry report that disclosed increases in heating oil production and supplies.
The main factor in the market was a report from the American Petroleum Institute that disclosed an increase last week of 3.3 million barrels of distillates, which include diesel fuel and heating oil. The increase in heating oil inventories came on top of an even bigger jump the previous week and most futures contracts fell by the daily limit of 2 cents a barrel.
Peter Beutel, a petroleum analyst in New York with Rodolf Wolff Energy, said the increase in heating oil relieved concern about a shortage.
Supplies remained 15.78% behind year-earlier levels, but that was about 5% better than five weeks ago, he said.
Beutel added that crude oil imports are running 40% higher than a year ago, and the amount of oil being refined is at its highest in 17 months. Further encouraging selling was an increase in production by the member nations of the Organization of Petroleum Exporting Countries, said Andy Lebow, a petroleum analyst in New York with Shearson Lehman Brothers.