WTI down slightly in afternoon trade

Crude oil prices were lower in late trade in New York Tuesday after early gains on concerns surrounding a Saudi Arabian oil tanker that was hijacked and that remained anchored near Somalia.

December contracts for West Texas Intermediate crude were down 20 cents to $54.75 per gallon a few minutes before the close of floor trade on the New York Mercantile Exchange, while January Brent crude contracts were down 23 cents to $52.08 per barrel.

The declines came even though Organization of Petroleum Exporting Countries member Iran called for another 1 million to 1.5 million barrel per day cut in production from the cartel.

The factors overcoming possible production cuts and the tanker hijacking to send oil prices down included general concerns about the faltering global economy and a prediction from US motorists’ lobbying group and insurer AAA that travel over the extended Thanksgiving weekend in the US next week will decline for the first time in six years.

Additionally, most analysts believe that new US inventories data from the Energy Information Administration will show that crude, gasoline, and distillates stockpiles were all higher last week while demand declined again.

Nymex December gasoline futures were down 3 cents to $1.15 per gallon in afternoon trade while January heating oil fell 5 cents to $1.81 per gallon and January natural gas dropped 4 cents to $6.60 per million British thermal units.