Mark Shenk and Gavin Evans (Bloomberg) -- Sept. 11, 2006 -- Oil fell for a sixth day, its longest losing streak in almost three years, and metals declined as negotiators reported progress to resolve a dispute with Iran and concern mounted the world economy is slowing.
Javier Solana, European Union foreign policy chief, said his meeting yesterday with Ali Larijani, Iran's top negotiator, was ``productive,'' easing concerns the country may halt oil exports. U.S. economic growth slowed last quarter, and Japan today said orders for new machinery fell the most in 20 years in July.
"There's some talk that this could be the beginning of the end'' for the five-year rally in commodity prices, said Ron Cameron, a resources analyst at Ord Minnett Ltd. in Sydney. ``Tensions seem to be softening'' in the dispute with Iran, he said. ``That's giving the traders an excuse'' to sell.
Crude oil for October delivery fell $1.05, or 1.6 percent, to $65.20 a barrel at 10:27 a.m. on the New York Mercantile Exchange, a five-month low. The six-day drop is the longest losing streak since October 2003, when crude fell for eight days.
In the petroleum markets, ``the fundamentals have changed,'' said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts. ``We have high inventories of everything,'' said Emerson, predicting oil will drop close to $60 a barrel. ``There's been a slowdown in demand growth since 2004 and production is rising.''
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