Wednesday, October 1, 2008

Oil Prices Continue to Drop as U.S. Demand Slackens

While the price of oil fluctuated significantly today, by the end of the day it settled more toward the lower end, ending at $98.53 for November delivery on the New York Mercantile Exchange (NYMEX). Prices continue to influence the amount Americans are willing to drive, affecting the overall demand.

Prices for the day went from a low of $95.95 a barrel to as high as $102.84.

For the week ending September 26, crude stock rose 1.5 percent by 4.3 million barrels, reaching 294.5 million barrels overall. That was close to three times what some analysts expected.

As far as gasoline inventories go, they rose to 900,000 barrels to 179.6 million barrels. Analysts were looking for a drop of 1 million to 3 million barrels.

Much of the discrepancy comes from the quick turnaround of U.S. refineries after the hurricane damage, along with the decreasing amount of miles consumers are traveling.

On the ICE Futures exchange in London, delivery for Novemeber Brent crude dropped by $2.84 to settle at $95.33 a barrel.

No comments:

Post a Comment