NEW YORK, Oct 1 (Reuters) - U.S. crude oil futures tumbled on Monday, extending Friday's end-of-quarter losses in what analysts called a technical correction after the recent record run-up and as November products futures also fell sharply.
"Although tight product supplies may temper the selling in crude oil, the market still appears to be technically overbought, so there should be follow-through selling this session, particularly if the dollar holds," John Kilduff, senior vice president at MF Global, wrote in a research note.
The waning threat of storm disruptions, after the most recent storm, Lorenzo, failed to hamper oil operations in Mexico, also was cited as a factor pressuring prices.
On the New York Mercantile Exchange at 12:36 p.m. EDT (1636 GMT), November crude (CLX7: Quote, Profile, Research) was down $1.79 or 2.19 percent at $79.87 per barrel, trading as low as $79.67, the lowest level since $78.44 on Sept. 26, and as high as $82.02.
Crude hit a NYMEX record high $83.90 on Sept. 20.
Support on Monday charted at $80.00 gave way early, with crude slumping below the $81.51 10-day moving average and just below the 20-day moving average at $79.71. Monday's early peak was 2 cents above resistance charted at $82.
In London, November Brent crude (LCOX7: Quote, Profile, Research) was down $1.97 or 2.49 percent at $77.20 a barrel, trading $76.59 to $79.54.
Refined products futures fell sharply. NYMEX November heating oil (HOX7: Quote, Profile, Research) was down 5.76 cents or 2.59 percent at $2.1680 per gallon, trading from $2.1633 to $2.2399. The November contract fell 2 percent on Friday.
November RBOB (RBX7: Quote, Profile, Research) was down 6.12 cents or 3.0 percent at $1.9799 a gallon, trading from $1.9750 to $2.0524. Continued...
Considering how much the price has increased this year, 2% is hardly a tumble. The real corrections occurred in December/January and just recently in August. In both cases, the price of oil went higher ...