Forex Trading

Crude oil fell in New York after Tropical Storm Ida weakened in the Gulf of Mexico as it approached the U.S. coast, reducing the potential of further supply disruptions. Ida’s sustained winds have dropped to 65 miles (104 kilometers) per hour from 70 mph earlier, with additional declines expected later today as it makes landfall, the National Hurricane Center said on its Web site. Producers have begun preparations to resume operations. The dollar rebounded from a two-week low against the euro, reducing the need for commodity purchases as an inflation hedge. “Most people feel that the storm isn’t going to be that severe,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “This is the last hurrah for the hurricane season.” Oil for December delivery declined as much as 53 cents, or 0.7 percent, to $78.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $78.98 a barrel at 12:16 p.m. Singapore time. Yesterday, the contract rose $2, or 2.6 percent, to $79.43. Prices have gained 77 percent this year. Workers were evacuated in the Gulf of Mexico and companies idled 29.6 percent of oil and 27.5 percent of natural gas output, according to government data. Ida was centered 100 miles south- southwest of Mobile, Alabama, at 9 p.m. local time and was moving north at 13 mph, the center said. Marathon Oil Corp. said it may start work on bringing output back tomorrow. The company had evacuated and shut in production at a platform located at Ewing Bank 873, which can produce the equivalent of about 12,000 barrels of oil a day, Lee Warren, a company spokesman, said in an e-mail.

U.S. Stockpiles
The dollar moved higher on prospects investors reduced short positions on the currency before a U.S. public holiday tomorrow. The greenback traded at $1.4981 per euro as of 11:40 a.m. in Singapore from $1.4999 in New York yesterday, when it touched $1.5020, the lowest since Oct. 26. U.S. crude-oil inventories probably rose 1 million barrels in the week ended Nov. 6, according to the median of 10 estimates by analysts before an Energy Department report. Supplies of distillate fuel, a category that includes heating oil and diesel, declined 700,000 barrels from 167.4 million the prior week, according to the survey. Gasoline stockpiles probably dropped 400,000 barrels from 208.3 million in the week before, the survey showed. The department is scheduled to release its weekly report on Nov. 12 at 11 a.m. in Washington, a day later than usual because of the Veterans’ Day holiday on Nov. 11. Brent crude for December settlement fell as much as 47 cents, or 0.6 percent, to $77.30 on the London-based ICE Futures Europe exchange. It was at $77.35 a barrel at 12:11 p.m. Singapore time. Prices rose $1.90, or 2.5 percent, to $77.77 a barrel yesterday.