CRUDE OIL SETTLES BELOW $56

Light sweet crude for December delivery settled and closed at $55.81 on the New York Mercantile Exchange Friday, the lowest settling price since June of 2005. January crude, which becomes the front-month contract on Monday, settled at $58.97.

From USA Today:

Analysts said the unusually wide spread between the December and January contracts signals buyers' comfort with the near-term supply fundamentals but concern about the heart of winter, when heating demand typically peaks.

If the weather remains mild, "we're looking at a supply glut," said James Cordier, president of Tampa-based Liberty Trading. Cordier, who views the OPEC cuts as bearish for prices because it signals weakening demand, believes Nymex crude futures are headed toward $52 this winter.