Saturday, April 10, 2010

Oil Slumps on Higher Inventories

Oil prices dropped after oil inventory has risen for the 10th straight week.

Prices for May delivery fell to $84.92, a 47 percent decline on Friday. After reaching 17-month high of almost $87 a barrel on Tuesday, prices have fallen $2 a barrel since then.

Taking into account the 10 straight weeks of oil inventory rising, and the 17-year high supply of gasoline, and there's sure to be downward pressure on prices in the next week or two, depending on how long the supply remains high and demand low.

Still, refiners continue to pump out crude oil at increased levels, which consumers will ultimately appreciate as they consider how much they're going to travel this year and whether they're going to stay closer to home.

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