Oil Extends Drop on Concerns of High Supplies

NEW YORK (AP) -

The price of oil fell to the lowest level in more than four months Friday, as concerns over high supplies continued to discourage investors.

Benchmark U.S. crude for December delivery dropped $1.77 to close at $94.61 a barrel on the New York Mercantile Exchange. The 1.8 percent drop to start November follows a nearly 6 percent decline in the price of oil in the month of October.

Ample supplies of crude have weighed on the price in recent weeks. The Energy Department said Wednesday that U.S. supplies increased 4.1 million barrels last week. Over five weeks, supplies have risen by more than 25 million barrels.

Brent crude, a benchmark for international crude also used by U.S. refineries, fell $2.93 to $105.91 a barrel on the ICE exchange in London.

In other energy futures trading on Nymex:

  •  Wholesale gasoline slipped 4 cents to $2.55 a gallon.
  •  Heating oil shed 7 cents to $2.88 a gallon.
  •  Natural gas dropped 7 cents to $3.51 per 1,000 cubic feet.

Metals prices were mostly lower.

Gold for December delivery fell $10.50 to $1,313.20 an ounce. December silver fell three cents to $21.837 an ounce. December copper edged down 0.2 cents to $3.2985 a pound.

December palladium rose $1.45 to $738.25 an ounce. January platinum rose $3.50 to $1,451.90 an ounce.

Crop prices were mixed.

December wheat edged up a quarter of a cent to $6.6775 a bushel. December corn lost a penny to $4.2725, and January soybeans fell 14.75 cents to $12.515.

Coffee futures rose for the first time since Oct. 14. The price of coffee has been falling sharply, as Brazil seems poised to have a record crop next year. Oversupply concerns have also been stoked by large productions in Vietnam and Colombia.

Raw coffee beans for December delivery edged up 0.15 cent to $1.0555 a pound.