VOICE OF AMERICA NEWS
With
the world economy slowing, the price of oil on the New York market has dropped
below $80 a barrel for the first time since October.
Oil
has traded at well over $100 a barrel in the last year. But on Thursday the
price for the West Texas Intermediate crude sold on the U.S. market dipped to
near $78, down 21 percent since the start of 2012. Brent crude drilled in the
North Sea and sold on the London market dropped below $90 a barrel, its lowest
level since December 2010.
Analysts
say prices are falling because there is not as much demand for oil at the
moment, as the U.S. labor market weakens, Europe struggles to resolve its
governmental debt crisis and manufacturing slows in China. When economies are
expanding rapidly, the price of oil used to fuel more manufacturing and other
business ventures usually increases.
Several
months ago in the U.S., motorists faced the highest cost ever for gasoline for
that time of the year. Many feared that prices would keep on climbing into the
summer when American families often drive to vacation destinations.
But
now, with the price of oil dropping, gasoline prices have fallen to an average
of 91 cents a liter ($3.47 a gallon), down 12 cents from their peak in early
April ($3.93 a gallon).
source: http://blogs.voanews.com/breaking-news/2012/06/21/as-world-economy-slows-oil-prices-drop/
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