Hotshot Connect Forum :: Crude Oil Falls to Seven-Month Low

Rose

Crude oil futures fell to a seven-month low on Tuesday, plunging more than $2 to settle below $59 a barrel, Bloomberg reported.

Oil prices fell on speculation that a report from the Department of Energy that will show rising supplies of distillate fuels, a category that includes diesel and heating oil, Bloomberg said.

Meanwhile, traders were unfazed by news on Monday that Nigeria and Venezuela, members of the Organization of Petroleum Exporting Countries, would cut oil production, Bloomberg reported.

Crude futures dropped $2.36 to close at $58.60 a barrel on the New York Mercantile Exchange, Bloomberg said.

The end of the Atlantic hurricane season also contributed to the decline in oil prices, as forecasters from the University of Colorado told Bloomberg they do not expect any more major hurricanes to form in the Atlantic.

The forecast helped curb fears that a major storm could damage oil platforms and refineries in the Gulf of Mexico, as Hurricanes Katrina and Rita did last year, Bloomberg said.