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RTRS: NYMEX-Crude drops on demand worry, Nov. to expire
 
NEW YORK, Oct 21 (Reuters) - U.S. crude futures fell on
Tuesday as economic concerns hit global equities, fueling
concerns about more oil demand being curbed even as Friday's
OPEC meeting and an expected output cut loomed.
Tuesday's expiration of the NYMEX front-month November
contract was expected to provide some volatility and the
dollar's broad rally also helped put pressure on oil futures.
"Crude and products futures slipped ... as traders head to
the sidelines ahead of today's expiration of the November NYMEX
contract and Friday's OPEC meeting in Vienna," Addison
Armstrong, analyst at Tradition Energy, wrote in a note.
"Crude futures are also coming under pressure from a surge
in the dollar."
"I don't think there will be too many traders that will
want to be short in front of the upcoming OPEC meeting ... but,
having said this, I have great difficulty in visualizing how
the cartel can come up with cuts totaling at least 2 million
barrels per day, even if it's in two stages," said Nauman
Barakat, senior vice president at Macquarie Futures USA.
PRICES
* On the New York Mercantile Exchange at 9:58 a.m. EDT
(1358 GMT), November crude CLX8 was down $2.99, or 4.03
percent, at $71.26 a barrel, trading from $71.00 to $75.69.
* In London, December Brent LCOZ8 was down $2.93, or 4.07
percent, at $69.10 a barrel, trading from $68.85 to $73.29.
* NYMEX November RBOB RBX8 fell 4.12 cents, or 2.4
percent, to $1.6789 a gallon, trading from $1.6450 to $1.75.
* NYMEX November heating oil HOX8 fell 5.07 cents, or
2.29 percent, to $2.1592 a gallon, trading $2.1543 to $2.2578.
* The heating oil crack spread <0#CL-HO=R> was at $19.67 a
barrel, and the RBOB crack spread <0#RB-CL=R> was in negative
territory at minus 69 cents.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $77.73/$87.96
Technical support/resistance:
NYMEX crude: $70.00/$76.00
NYMEX heating oil: $1.9875/$2.2975
NYMEX RBOB: $1.5820/$1.8615
For a report on oil market technicals click [ID:nLL124323]
MARKET NEWS
* Iran's oil minister said on Tuesday a demand drop could push
OPEC to cut output by 2 million to 2.5 million bpd and said
falling prices would hurt consumers by damaging investment.
[ID:nBLA131347]
* Russia "will stick to the formula of bilateral strategic
partnership between Russia and OPEC," Russia's energy minister
said on Tuesday. [ID:nLL196958]
* OPEC seaborne exports, excluding Ecuador, fell 900,000 bpd in
the four weeks to Oct. 5, with Gulf producers accounting for
most of the cut, Lloyd's Marine Intelligence Unit said.
[ID:nLL153781]
* The dollar staged a broad rally to hit a 1-1/2-year high
against a basket of currencies. [USD/]
* World stocks stumbled in the attempt to put in gains for the
third day in a row on Tuesday. [MKTS/GLOB]
* U.S. weekly oil inventory data Wednesday expected to show
crude and products supplies rose last week, according to a
preliminary analyst survey on Monday. [EIA/S]
* FACTBOX-OPEC comments ahead of Oct. 24 meeting [ID:nLJ88858]
* For a list of top energy news stories, click [TOP/O]
(Reporting by Robert Gibbons; Editing by Walter Bagley)
Source