Oil Prices Retreat to Near $85 a Barrel Thanks to Plentiful Supply

Barrels of oilBy PAMELA SAMPSON

BANGKOK -- Ample supplies helped send oil prices down to near $85 per barrel on Friday.

Benchmark oil for December delivery was down 80 cents to $85.25 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. Oil hasn't been that low since July 10, when the contract closed at $84.02.

The contract rose 32 cents to finish at $86.05 a barrel in New York on Thursday, the only day this week that oil prices have risen.

Brent crude fell 79 cents to $107.70 a barrel in London.

Analysts said the recent fall in oil prices can be partly attributed to ample supplies. Oil has dropped more than 7 percent in the past week.

The Energy Department said Thursday that U.S. oil supplies grew last week by 5.9 million barrels, or 1.6 percent. At 375.1 million barrels, the nation's oil inventory is 11.1 percent above year-ago levels.

"I think that's all about a scenario of more than adequate supply for the current demand level," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

Traders were looking ahead to Friday's report on U.S. gross domestic product for the third quarter. Analysts are estimating that the U.S economy grew 1.8 percent. A level significantly lower than that would be negative for oil consumption prospects.

"If it is significantly weaker than that, and there is a chance of that ... that would be a little bit disappointing in terms of people's demand outlook," Spooner said.

In other energy futures trading in New York:
  • Natural gas fell 1.7 cents to $3.417 per 1,000 cubic feet.
  • Wholesale gasoline fell 1 cent to $2.622 a gallon.
  • Heating oil fell 1.1 cents to $3.035 a gallon.


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34 Comments

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Jennie

Don't need Romney in the White House

October 27 2012 at 1:44 PM Report abuse -1 rate up rate down Reply
Duchess

I suppose since the major oil companies are flooding Romney with Millions of dollars.... we wont see too much of a change at the pump..... Anyone big oil supports really needs to be watched IMO

October 27 2012 at 11:26 AM Report abuse rate up rate down Reply
tj1108

We need a Republican in the white house for no other reason then to get 100% of the so called News Oganizations to cover and investigate stories. With a Demacrat in the white House only Fox news is covering the "cover up". Who denied help 3 times for the embasy under attack. Who sent (state dept) Susan Rice out to 5 news shows 5 days after the attack to say it was not a terriorist attack but a spontanious attack that erupted from a protest of a youtube video. The emails released over the last week proved that was a lie. This stinks and If Obama is re-elected we the American People will never know the truth. Its sad that there are so many that will support this cover up.

October 26 2012 at 4:58 PM Report abuse rate up rate down Reply
1 reply to tj1108's comment
t_trevor2

A YoutUbe video. LOL!

Nothing like government goons eager to throw freedom of speech under the bus to cover their sorry incompetent arses!

Of course, the dumbest 1% predictably ate it right up.

October 26 2012 at 8:59 PM Report abuse +1 rate up rate down Reply
darbrow717

Another article is saying the price is going back up because of the frankenstorm, they cant even keep up with their excuses, even as supply is at an all time high.

October 26 2012 at 2:43 PM Report abuse +2 rate up rate down Reply
1 reply to darbrow717's comment
coochiescooter

Supply means nothing if you can't refine the product.

October 26 2012 at 3:14 PM Report abuse rate up rate down Reply
2 replies to coochiescooter's comment
darbrow717

What, for 1 day? haaaaaa
BAAAAAAAAAA you sheep.

October 26 2012 at 3:41 PM Report abuse rate up rate down
t_trevor2

Storms are these acts of nature that can leave lasting destruction in their aftermath.

Perhaps your neighborhood includes an elementary school child with a vocabalary that extends to 5 letter words who would be willing to help you out?

October 26 2012 at 3:55 PM Report abuse -3 rate up rate down
AL-Concetta

There is to much GREED for gas prices to drop it's the station owners that keep the prices high. They want to make all the bucks they can. Because there is no law says they have to lower their prices.

October 26 2012 at 1:56 PM Report abuse +1 rate up rate down Reply
2 replies to AL-Concetta's comment
coochiescooter

I don't believe that at all, station owners might make about 3 cents per every gallon they sell. The government is more greedy as they collect more than any station owner does per gallon of gas. The problem is they never apply it to where it's supposed to go.

October 26 2012 at 2:00 PM Report abuse rate up rate down Reply
t_trevor2

Station owners compete feverishly, each knowing that customers have no loyalty to anything but the cheapest price. Any owner who can sell gas for $.01/gallon less than the guy down the street gets all the business. The GREEDY owners are those dropping prices to take all the business from their competition.

October 26 2012 at 3:20 PM Report abuse rate up rate down Reply
merle the pearle

O please folks they can jerk our chain whenever they won't, it's all about control!

October 26 2012 at 1:55 PM Report abuse rate up rate down Reply
3 replies to merle the pearle's comment
t_trevor2

So is the drop in oil prices the result of speculators?

Or is it "greedy" consumers?

October 26 2012 at 1:49 PM Report abuse rate up rate down Reply
1 reply to t_trevor2's comment
coochiescooter

Global greedy consumers, hands down.

October 26 2012 at 1:54 PM Report abuse rate up rate down Reply
abcborderline1

The bad economy, dictates the falling prices.

October 26 2012 at 1:29 PM Report abuse +1 rate up rate down Reply
ectullis

Usage is down maybe because nobody is working.

October 26 2012 at 1:04 PM Report abuse -1 rate up rate down Reply
coochiescooter

Evan's Boehner got taken away. LMAO. Better breakout the Cialis Evan.

So I guess you don't drive the weiner mobile huh? Come on Evan tell us what you drive. Escalade,Mercedes, Porche, Vette, Chevy Volt ? Donkey ?

October 26 2012 at 12:55 PM Report abuse -3 rate up rate down Reply