Crude Oil Falls as Hurricane Wilma Misses U.S. Gulf...

Crude Oil Falls as Hurricane Wilma Misses U.S. Gulf Platforms

Oct. 24 (Bloomberg) -- Crude oil fell as Hurricane Wilma missed most of the Gulf of Mexico's production platforms, heading for the Florida coast.

The storm, with sustained winds of 115 miles (185 kilometers) an hour, may reach the U.S. coast as early as daybreak, forecasters said. Gulf producers and refiners are still recovering from damage caused by Hurricanes Katrina and Rita that pushed oil to a record $70.85 a barrel in August.

``It's now clear the hurricane is headed for Florida,'' said Anthony Nunan, assistant general manager of international petroleum business at Tokyo-based Mitsubishi Corp. ``The hurricane season is on the wane.''

Crude oil for December delivery fell as much as 87 cents, or 1.4 percent, to $59.76 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract traded at $59.81 at 7:53 a.m. London time. December oil declined for the fourth day in five. The contract lost 2.2 percent last week.

Brent crude oil fell as much as 66 cents, 1.1 percent, to $57.82 a barrel in after-hours trading on London's International Petroleum Exchange at 7:54 a.m. local time.

On Oct. 21, New York oil rose 1 percent to $60.63, rebounding from a three-month low on concern Wilma may take a more westerly track and hit oil facilities in the Gulf of Mexico. Futures have declined 15 percent since reaching a record $70.85 a barrel on Aug. 30, the day after Katrina made landfall, as concern about shortages next Northern Hemisphere winter eased.

Prices May Fall

``At present we don't have any problem. That's why people are now taking profits,'' said Tetsu Emori, a commodities strategist at Mitsui Bussan Futures Ltd. in Tokyo. U.S. benchmark West Texas Intermediate crude ``is moving between $58 and $62 a barrel.''

Hurricane Wilma was 100 miles west of Key West at 1 a.m. local time, the National Hurricane Center said on its Web site. Wilma has strengthened to a Category 3 storm on the five-step Saffir-Simpson scale of intensity, the center said. The storm is moving northeast at 18 miles per hour.

Hurricane Rita halted oil and gas production in the U.S. Gulf as it blew through the region in September. At the end of last week, 66 percent of U.S. Gulf oil production remained closed, the Minerals Management Service said.

Gasoline for November delivery fell as much as 2.84 cents, or 1.7 percent, to $1.6115 in after-hours trading. The contract fell 2 percent last week.

Crude oil may fall for a second week this week as imports replenish U.S. inventories cut by Hurricanes Katrina and Rita, a Bloomberg survey showed. The poll results were the most bearish since the survey began in April 2004, with 27 of 40 analysts surveyed, or 68 percent, saying oil will fall this week. Three, or 8 percent, said prices will rise, while 10 forecast little change.

Asia Demand

``Oil could ease back a bit today, though the hurricane season runs into November so we're not out of the woods yet,'' said David Thurtell, a commodity strategist at Commonwealth Bank of Australia in Sydney. ``Asian demand is still pretty strong, so we're likely to see some buying if it goes much below $60.''

Oil use by Organization of Economic Cooperation and Development countries in the Pacific region may increase 8 percent this quarter from the third quarter, the Organization of Petroleum Exporting Countries said last week.

Another weather system, Tropical Depression Alpha, has been downgraded from a tropical storm as it approaches the southeastern Bahamas, the Hurricane Center said. The depression is moving toward the north-northwest at about 18 miles per hour, it said in an advisory at 5 p.m. U.S. Eastern Daylight Time.

Wilma is the 12th hurricane of the June 1 to Nov. 30 Atlantic season, equaling a record from 1969. Alpha is the 22nd named storm of the year, breaking a record set in 1933.

Heating oil for November delivery fell 1.95 cents, or 1 percent, to $1.847 a gallon in after hours trading. The contract declined 4.3 percent last week.

``If winter is colder than expected then prices could rebound quite sharply,'' Mitsui's Emori said.