By Mark Shenk
Sept. 8, 2006 (Bloomberg) -- Crude oil and heating oil tumbled to five-month lows, and gasoline fell, on signs that U.S. fuel inventories will be sufficient as economic growth in the world's biggest energy consumer slows.
``The geopolitical picture is quieter than it has been and there is no fundamental reason for prices to rise,'' said Michael Fitzpatrick, vice president for energy risk management at Fimat USA in New York. ``There is ample crude oil around, refineries are operating at high levels and the economy is slowing, which will depress demand.''
Crude oil, heating oil, diesel and gasoline supplies last week were above the five-year average, according to the Energy Department. The faltering U.S. housing market will be a drag on economic growth, an analyst survey showed. Concern that sanctions would be imposed on Iran after an Aug. 31 deadline to stop uranium enrichment helped to bolster prices last month.
Crude oil for October delivery plunged $1.07, or 1.6 percent, to $66.25 a barrel on the New York Mercantile Exchange, the lowest close since April 4. Prices fell 4.2 percent this week.
Heating oil for October delivery slipped 4.44 cents, or 2.4 percent, to $1.8432 a gallon, the lowest close since March 28.
Crude-oil supplies fell 2.21 million barrels to 330.6 million in the week ended Sept. 1, leaving inventories 12 percent higher than the five-year average, the Energy Department said yesterday. Refineries operated at 93.6 percent of capacity, the highest since June.
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