Crude prices down on US factory output data

Crude oil prices dropped Monday on new data showing that manufacturing activity was down in the US in October, raising more fears that demand will decline further.

The Institute for Supply Management said its factory index was at 38.9 last month, more of a decline than had been anticipated.

December contracts for West Texas Intermediate crude dropped $3.90 to $63.91 per barrel at the close of floor trade on the New York Mercantile Exchange while Brent crude for December delivery was down $4.79 to $60.53 per barrel on the ICE Futures Europe exchange in London.

Crude prices are now down 57 percent from their peak in July and are 33 percent lower than they were last year at this time.

Prices dropped 33 percent in October, the biggest monthly decline in history.

Traders seemed to be ignoring indications that members of the Organization of Petroleum Exporting Countries look to be implementing production cuts decided on last month at a Vienna meeting as the United Arab Emirates, Iran and Nigeria have all announced that less oil will be available to buyers.

December gasoline futures on Nymex were down 13 cents to $1.37 per gallon while December heating oil dropped 10 cents to $1.99 per gallon but January natural gas added 3 cents to $7.08 per million British thermal units.