(Updates with settlement prices in sixth paragraph.)
Sept. 27 (Bloomberg) -- West Texas Intermediate crude futures may fall next week on concern that weaker demand will boost U.S. supplies, a Bloomberg survey showed.
Fourteen of 29 analysts, or 48 percent, forecast crude will drop through Oct. 4. Seven respondents, or 24 percent, predicted a gain. Eight projected no change. Last week, 44 percent of analysts said there would be a decline.
U.S. crude inventories grew by 2.64 million barrels in the seven days ended Sept. 20, the first increase in four weeks, the Energy Information Administration reported on Sept. 25. Gasoline demand slid 2 percent to 8.85 million barrels a day.
“The fundamentals are getting bearish and the trend is down,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “Demand for oil is going to be weaker.”
Total petroleum demand decreased 2.8 percent to 19.3 million barrels a day last week, according to the EIA, the Energy Department’s statistical arm. Refineries operated at 90.3 percent of capacity, the lowest level since Aug. 9.
Crude futures for November delivery fell $1.80, or 1.7 percent, this week to $102.87 a barrel on the New York Mercantile Exchange, down for a third week. Futures have advanced 6.5 percent in the third quarter and 12 percent this year.
The oil survey has correctly predicted the direction of futures 50 percent of the time since its start in April 2004.
Bloomberg’s survey of oil analysts and traders, conducted
each Thursday, asks for an assessment of whether crude oil
futures are likely to rise, fall or remain neutral in the coming
week. The results were:
RISE NEUTRAL FALL
7 8 14
--With assistance from Sherry Su in London, Tsuyoshi Inajima in Tokyo, Sarah Chen in Beijing, Pratish Narayanan in Mumbai and Ramsey Al-Rikabi and Ann Koh in Singapore. Editors: Richard Stubbe, Charlotte Porter