Oil Hovers Below $93 a Barrel After Sharp 2-Week Decline

oil prices fallBy ALEX KENNEDY, Associated Press

SINGAPORE -- Oil prices hovered below $93 a barrel Friday in Asia, pausing after the latest twists in Europe's debt crisis triggered a sharp two-week sell-off.

Benchmark oil for June delivery was up 4 cents to $92.60 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 25 cents to settle at $92.56 in New York on Thursday.

Brent crude for July delivery was up 11 cents at $107.60 per barrel in London.

Crude has plunged about 13% from $106 two weeks ago because of expectations Europe's debt crisis will slow the global economy and reduce demand for fuel.

On Thursday, rating agency Moody's downgraded its credit ratings on 16 Spanish banks while a newspaper reported depositors were rushing to withdraw their money from Bankia, a troubled Spanish bank that was effectively nationalized just one week ago.

Investors are also closely watching the U.S. economy, which has shown signs of uneven growth in recent months. The government said Wednesday that crude inventories rose again last week to their highest since 1990.

"The oil market remains highly sensitive to any negative macroeconomic news, particularly with stockpiles at 22-year highs," energy trader and consultant Ritterbusch and Associates said in a report.

A sustained drop in crude should eventually ease gasoline prices, which would slow global inflation and allow policymakers to implement stimulus measures or loosen monetary policy to boost economic growth.

In other energy trading, heating oil was up 0.4 cent at $2.86 per gallon and gasoline futures slid 0.7 cent at $2.81 per gallon. Natural gas rose 3.3 cents at $2.63 per 1,000 cubic feet.


Follow Alex Kennedy on Twitter at http://twitter.com/alexkennedy_ap


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David

And the price of gas will not come down!!!

May 21 2012 at 10:06 AM Report abuse rate up rate down Reply
maloontransllc

Obuma you are all but out of gas buddy. The Brakes are on the economy because of high energy,happened second quarter of last year and yet you didnt learn frpm that. Please take Biden,reed,and that horrible women from CA and go organize a zoo or something because we are tired of being run around like circus animals !!

May 21 2012 at 7:43 AM Report abuse +1 rate up rate down Reply
nobjyc

if they would let us drill on the west coast oil would be 16 dollars a barrel but our muslim leader said no so as we suffer over seas gets richer

May 20 2012 at 9:12 PM Report abuse rate up rate down Reply
Jennie

Why are we still paying over 3.00 a gal????????

May 20 2012 at 1:37 PM Report abuse rate up rate down Reply
solantey

Gold has more upside than oil. One way to leverage an investment in gold is by investing in junior mining start-up companies such as Bonanza Goldfields, BONZ. Check it out to see if it fits your investment criteria.

May 20 2012 at 12:12 PM Report abuse rate up rate down Reply
Angelina Smith

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May 18 2012 at 2:59 PM Report abuse -3 rate up rate down Reply
ilm9p

Yet the filthy sub-human scum in the middle east still have more money than God.

May 18 2012 at 2:58 PM Report abuse +1 rate up rate down Reply
Jetncat

What's really a sharp decline is our economy dropping like a rock. And that is why our oil is dropping. Don't need oil if you aren't using it. If and when the economy does come back and 25% of America'S workforce becomes employed oil will go back up. Without an energy policy is will be business as usual and will spike once again.......... I believe that will be in November when Obama leaves office.

May 18 2012 at 1:17 PM Report abuse +6 rate up rate down Reply
1 reply to Jetncat's comment
chris1011

Dropping lie a rock? It's actually advancing, not greatly but still advancing. Unemployment is slowly dropping also.

May 18 2012 at 1:26 PM Report abuse -3 rate up rate down Reply
2 replies to chris1011's comment
jockmassage26

your are so NAIVE is yo u think unemployement is down.. you cant have a true unemployment number if you dont count those that dont get benefits or those who cant look for work cause they cant afford the gas to drive around looking.. the whole system is FLAWED

May 18 2012 at 3:45 PM Report abuse +1 rate up rate down
democracks0

Chrissy is an Obamite. Nothing more to say.

May 18 2012 at 3:49 PM Report abuse +2 rate up rate down
Rich

And still gas prices went up $.20 last week.

May 18 2012 at 1:01 PM Report abuse +4 rate up rate down Reply
donut999

All should remember that oil prices are not just about actual demand--folks world wide needing to fill up their tanks. Should not be that way, but it is a fact of life. There are oodles of potential physical and geo-politicial events that can jack oil and other commodity prices up.

May 18 2012 at 12:56 PM Report abuse +1 rate up rate down Reply