Friday, September 26, 2008

Oil Drops on Bailout Uncertainty

Oil settled about $1 lower on Friday as the unknown concerning the bailout package continues to paralyze investors across the board.

Crude in the U.S. settled at $106.89 a barrel, while Brent crude in London slipped by $1.06 to $103.54.

With demand for oil slackening because of consumers tightening their wallets, oil would probably be much lower if the hurricanes hadn't disrupted production in the Gulf of Mexico. That has helped support the commodity in otherwise difficult circumstances.

Shell Oil said it will take about two more weeks to get all its offshore fields in production again. Shell is the largest oil producer in the Gulf.

About 25 percent of U.S. crude production is in the Gulf of Mexico.

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