Futures Movers: Oil falls, snapping two-day winning streak

SAN FRANCISCO (MarketWatch) — Crude-oil futures declined Thursday, marking its first down move after two straight sessions of gains.

On the New York Mercantile Exchange, light, sweet crude futures CLZ4, -1.56%  for delivery in December fell $ 1.08, or 1.3%, to settle at $ 81.12 a barrel.

December Brent crude LCOZ4, -1.39%  on London’s ICE Futures exchange fell 88 cents, or 1%, to end at $ 86.24 a barrel.

Wednesday’s Federal Open Market Committee statement, which offered an optimistic outlook for the U.S. economy, and Thursday’s stronger-than-expected U.S. gross domestic product data “both contributed to a stronger U.S. dollar, prompting selling across a range of commodities,” said Tim Evans, an analyst with Citigroup, in a note.

Global oil prices settled higher for the second consecutive day Wednesday, after weekly U.S. oil stockpiles didn’t rise as much as they were expected to, and petroleum product stockpiles shrunk, indicating stronger demand.

Analysts had already fretted, however, that the price strength only was demonstrating was likely to be short-lived.

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In the near-term, oil price may even fall below $ 80 a barrel, especially if the OPEC meeting on November 27 yields no results, Commerzbank said in a report. “We have therefore cut our Brent price forecast for the annual average in 2015 to $ 85 a barrel,” the bank said.

Credit Suisse analysts followed suit on Thursday, with analysts there lowering their Brent price forecast to $ 92 a barrel from $ 98 a barrel for the fourth quarter, and to $ 91.50 for 2015.

Oil markets have lost nearly 25% from a June peak on concerns about plentiful supplies amid lukewarm demand worldwide.

Elsewhere in energy, Nymex gasoline for November RBX4, -1.38%  lost $ 2.49 cents, or 1.1%, to settle at $ 2.1958 a gallon, while November heating oil RBX4, -1.38%  fell $ 2.22 cents, or 0.9%, to finish at $ 3.5128 a gallon on Nymex.

December natural-gas futures NGZ14, +2.06%  rose $ 3.90 cents, or 1%, to $ 3.8270 per million British thermal units.

Earlier Thursday, the Energy Information Administration reported natural gas supplies rose by 87 billion cubic feet in the week ended Oct. 24, slightly more than analysts had expected.

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