Oil Prices Drop to Year-And-A-Half Low
Jan 04 3:48 PM US/Eastern
By LAUREN VILLAGRAN
Oil prices shed more than $2 Thursday to settle at their lowest level since June 2005, after the U.S. government reported higher-than- expected inventories of gasoline, heating oil and diesel fuel amid warm winter temperatures.
An unseasonably mild winter in the Northeast and Midwest has led to a buildup in inventories and, as a result, weaker prices.
"There is no winter at all, thus we have a lot of supplies with no home and prices have nothing to do but fall," said James Cordier, president of Liberty Trading Group in Tampa, Florida.
Light, sweet crude for February dropped $2.73, or 4.7 percent, to settle at $55.59 a barrel on the New York Mercantile Exchange. The settlement follows a 4.5 percent decline on Wednesday and represents the lowest settlement price since June 15, 2005.
U.S. crude inventories declined last week by 1.3 million barrels to 319.7 million barrels compared with the previous week, the Energy Information Administration reported Thursday. Analysts on average had expected crude stocks to rise by 930,000 barrels, according to a survey by Dow Jones Newswires.
Thursday, January 04, 2007
Someone alert Bill O'Reilly!
Oil prices have dropped about $8.00 the last few weeks, excellent!