Crude Oil hits the 7 Month Low at $58.25

WTI Nymex crude oil hit fresh 7-month low at $58.25 earlier this morning on expectations of another build in gasoline and distillate supplies as refiners ramp up production ahead of the winter heating season.
Traders now talking about a "glut" of oil, with distillate supplies now 15.0% higher than last year, gasoline stocks 9.0% greater, whilst crude oil stocks are 5.0% above last year.
The move lower in oil prices also comes after forecasters at Colorado State University on Tuesday revised their projections -- for the third time this year -- and now expect only two more tropical storms by Nov. 30, the end of the season.
Crude oil now looks vulnerable to hit $54.85, which is the 38.2% of November 2001 low to July 2006 rally, as traders continue to look to test OPEC resolve.
WTI Nymex crude oil is at $58.36, down 31 cents.