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	<title type="html"><![CDATA[Crude Oil Futures Trading Forum by Live Oil Prices - Oil price trading around $70 as stronger dollar hits demand]]></title>
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	<updated>2009-09-22T06:19:23Z</updated>
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			<title type="html"><![CDATA[Oil price trading around $70 as stronger dollar hits demand]]></title>
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			<content type="html"><![CDATA[Oil prices fell the most in a week, dipping below $70 a barrel as a stronger dollar and slipping equity markets reduced investor demand for crude.

The drop came as the cost of insuring against a collapse in oil prices rose to the highest ever and as stockpiles rose on both sides of the Atlantic. Crude oil for October delivery fell $2.23, or 3.1pc to $69.81 a barrel on the New York Mercantile Exchange. That was the biggest drop since September 11.

The October contract expires today. The more-widely held November contract fell $2.62, or 3.7pc to $68.70. The cost of insuring against a collapse in oil prices has risen to a record, a sure sign that the markets are expecting further slide in the price of crude.

Oil traders are paying more than ever in the options market to protect against a plunge in crude prices. Crude stockpiles in the US are now 14pc larger than a year ago and OPEC is pumping 600,000 barrels a day more than the world needs, according to the International Energy Agency (IEA).

While the recovery from the first global recession since World War II pushed oil up 62pc this year to $72.04 a barrel in New York, growth alone isn't likely to erode the glut by the end of next year because production exceeds demand, data from the Paris-based IEA shows.

Oil inventories totalled about 2.8 billion barrels at the end of July within the 30 nations of the Organisation for Economic Cooperation and Development, according to the IEA. The total is equal to 62 days of demand, and 4.6pc more than the same time last year.

Supplies are brimming on both sides of the Atlantic. US distillate fuel inventories, which include heating oil and jet fuel, are the highest since 1983 at 167.8 million barrels, according to the US Energy Department.

US gasoline supplies are 2.2pc greater than they were in late May, the start of the peak-demand summer driving season, at 207.7 million barrels. More than 60 million barrels of fuel is stored on tankers offshore, according to the IEA.]]></content>
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			<updated>2009-09-22T06:19:23Z</updated>
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