Commodities Bust: Fact or Wet Dream?

Crude oil traded near a five-month low in New York after falling yesterday on signs U.S. fuel stockpiles are rising and Iran may suspend its uranium enrichment to help settle its dispute with the United Nations.

Gasoline supplies in the U.S., the world's biggest oil user, probably rose for a fourth straight week, according to an analyst survey. Iran may consider suspending its uranium enrichment for two months if the UN also drops moves to impose sanctions against it, Agence France-Presse reported, citing a western diplomat it didn't name.

``All the fundamentals are still pointing to a pull-back in the market,'' said Mike Sander, a commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. ``Any positive news out of Iran will help lower the crude oil market.''

Crude oil for October delivery was at $65.70 a barrel, up 9 cents, in after-hours electronic trading on the New York Mercantile Exchange at 8:48 a.m. in Singapore. Prices today are 3.8 percent higher than a year ago.

The contract fell 64 cents, or 1 percent, to $65.61 yesterday, the lowest close since March 27. Prices have fallen the past six days, the longest decline since October 2003.

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