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Tuesday, January 25, 2011

Oil Prices Drop Below $87 A Barrel

Oil continued to drop Tuesday on mixed economic news and the possibility that Saudi Arabia and other OPEC countries will step up production.

Benchmark crude for March delivery lost $1.17 at $86.70 per barrel in midday trading on the New York Mercantile Exchange. Oil hasn't been below $87 since Dec.1. It's fallen more than 4 percent since Thursday, when it was approaching $92 a barrel. About half of the drop happened in the last two days.

One of the main reasons for the decline this week is comments on Monday by the Saudi oil minister, which many analysts and investors took to mean that Saudi Arabia, the world's biggest oil producer, thought oil had gotten too expensive and could threaten global economic growth. He seemed to imply that the Saudis and other members of the Organization of the Petroleum Exporting Countries could raise production to bring down the price of oil.

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1 comment:

Karloff said...

great, so when are gas prices going to drop ? a hurricane threatens a refinery, and prices soar. a deep water oil well leaks god knows how much into the gulf, and prices drop ! ???? these oil ceo's need some street justice.