Wow! Oil is down $4.25! And to think I just filled my 250 gallon heating oil tank on Friday. (I paid $3.65/gallon.)
Oil is now $87/barrel.
Oil Wipes Out 2011’s Gains on Stall Signs
By Margot Habiby
Bloomberg.com
Aug 4, 2011 12:33 PM ET
Oil fell to the lowest level in five months in New York, erasing 2011 gains amid growing evidence the U.S. economic recovery is stalling and sapping demand in the world’s biggest consumer.
Futures dropped as much as 5.1 percent as a U.S. government report showed limited improvement in the labor market. The Dollar Index gained as much as 1.5 percent, curbing commodities’ appeal as an alternative investment, and the MSCI All-Country World Index of stocks slid 10 percent from the year’s May high in its first so-called correction in more than a year.
“What you’re looking at here is concerns about what demand is going to be doing because of the economy,” said Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington. “The result of all this could be slower growth and the result of slower growth is less oil demand.”
Crude for September delivery declined $4.19, or 4.6 percent, to $87.74 a barrel at 12:29 p.m. on the New York Mercantile Exchange. It touched $87.25, the lowest level since Feb. 22 on an intraday basis. The contract has fallen 3.4 percent in 2011.
Full article: http://www.bloomberg.com/news/2011-08-04/oil-declines-wiping-out-2011-gains-as-u-s-economy-stall-crimps-demand.html
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