Oil holds near 2012 low

By CHRIS KAHN
(May 25th, 2012 @ 8:16am)

AP Energy Writer

NEW YORK (AP) - The price of oil is holding near the lowest levels of the year.

Benchmark U.S. crude added 40 cents to $91.06 per barrel in New York while Brent crude rose 60 cents to $107.05 per barrel in London.

Both crude varieties have tumbled this month on forecasts of weaker world demand and higher supplies.

The economies of the two biggest oil consumers- the U.S. and China- appear to be slowing down. And many analysts are betting that the European Union will fall into a recession as it struggles with massive government debts. Meanwhile, some of the world's largest oil producing countries have been exporting more crude this year, boosting supplies.

In the U.S., retail gasoline prices fell by a penny to $3.666 per gallon.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Last 5 Comments

  • Reply Abuse Vote
    as for
    uyiu p
    that baboon comment, has no relevency with the discuccsion yet everytime I look at the blog it is there. What are you talking about what are you refering to? I think we can dismiss this as ignorant babble.
  • Reply Abuse Vote
    part 2
    uyiu p
    currency. Making oil speculators assume more of the realities that refiners face would bring oil prices back in line. You buy it, you take immediate posession of it, assume all storage and logistical aspects. It is a commodity and needs to be treated as such, not a currency base. As for the inflation comment, the dollar is stronger today(1.27 per euro vs 1.38) than a year and a half ago when oil prices were in the high 60 range per barrel.
  • Reply Abuse Vote
    part 2
    uyiu p
    currency. Making oil speculators assume more of the realities that refiners face would bring oil prices back in line. You buy it, you take immediate posession of it, assume all storage and logistical aspects. It is a commodity and needs to be treated as such, not a currency base. As for the inflation comment, the dollar is stronger today(1.27 per euro vs 1.38) than a year and a half ago when oil prices were in the high 60 range per barrel.
  • Reply Abuse Vote
    Speculators buy oil as a hedge and
    uyiu p
    They buy oil as an investment vehicle. Deregulation of this industry during G.W Bush presidency has allowed oil to be traded in contracts, speculators never take physical posession of oil nor do they worry about logistical aspects of storage sale to refineries. In effect, oil is a new currency where,
  • Reply Abuse Vote
    Alarmed Psychos (AP)
    Jshope
    Every few weeks we get the latest news story about gas prices skyrocketing. The real problem is the Fed pushing overall inflation by printing money and the continued pressure on business by a regulation crazy White House.
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