NYMEX-Crude falls back after House approves bailout

Fri, Oct 3 2008, 18:17 GMT
http://www.afxnews.com

NEW YORK NEW YORK, Oct 3 (Reuters) - U.S. crude oil futures fell back on Friday

following the passage by the U.S. House of Representatives of a $700

billion bailout bill for the U.S. financial sector.

Traders said prices fell as players were on the "buy on the rumor, sell

of the fact."

On Wall Street, which crude markets was tracking earlier, gains were

pared after the House vote. Earlier, stock were up on news of a proposed

deal to acquire beleaguered bank Wachovia Corp., and as the dollar

rose against the euro.

After the bailout passage, the dollar fell.

"With the flow of credit reestablished, the global markets will be able

to leave the operating room and be moved into the ICU (Intensive Care Unit)

to stabilize," said Chris Jarvis, senior analyst, Caprock Risk Management,

in New Hampshire.

PRICES

* On the New York Mercantile Exchange at 1:50 p.m. EDT (1750 GMT),

November crude was down 86 cents, or 0.92 percent, at $93.11 a

barrel, trading from $91.30 to $96.03.

* In London, November Brent slid $1.04, or 1.15 percent, to

$89.52 a barrel, trading from $88 to $92.46.

* NYMEX November RBOB was down 3.45 cents, or 1.53 percent, at

$2.2205 a gallon, trading from $2.1875 to $2.2886/

* NYMEX November heating oil slipped 6.08 cents, or 2.24

percent, at $2.6487 a gallon, trading from $2.6240 to $2.7320.

* The heating oil crack spread dipped to $18.14 a barrel,

and the RBOB crack spread rose to $0.15.

TECHNICALS

NYMEX crude support/resistance: $90.00/$100

20-day moving average: $102.23

NYMEX heating oil: $2.60/$2.90

NYMEX RBOB: $2.20/$2.40

MARKET NEWS

* U.S. stocks were higher but pared gains as financial shares came off

their peaks on profit-taking after passage of the House bill.

* The dollar fell versus the euro after the passage of the legislation.

* The Institute of Supply Management said its nonmanufacturing index for

September showed that growth in the services sector held up in September,

tempering worries about the economy and the profit outlook.

* U.S. employers cut payrolls at the steepest rate in 5-1/2 years during

September, though the unemployment rate was unchanged, at 6.1 percent, from

August.

* A Reuters survey of oil firms, OPEC officials and analysts yielded an

expectation that OPEC oil supply fell in September.

(Reporting by Gene Ramos and Robert Gibbons;

Editing by John Picinich)

Keywords: MARKETS ENERGY NYMEX

Chuck Mikolajczak

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