Crude oil prices renew a slide that has yet to bottom Gary Strauss, USA TODAY 6:34 p.m. EST January 12, 2015 AP GAS PRICES A USA VT (Photo: Toby Talbot, AP) 101 CONNECT 67 TWEET 7 LINKEDIN 4 COMMENT EMAIL MORE Crude oil prices plunged to their lowest levels in nearly six years Monday as global supply continues to outstrip demand, prompting a growing number of industry forecasters to lower 2015 forecasts. Benchmark West Texas Intermediate crude sank 5% to $46.07 a barrel, while Brent crude dropped 5.6% to $47.33. The latest oil sell-off spilled over to Wall Street and renewed selling pressure on oil and energy stocks, but promises to bring more even more relief to motorists. Wholesale gasoline for mid-February delivery dropped 3.5% to $1.28 a gallon. Wholesale gas typically trades at about 75 cents a gallon less than retail levels, and Mondays trading reflects retail prices falling up to another 10 cents. Motorists in 18 states are already paying an average of less $2 a gallon, according to AAA spokesman Michael Green. Nationally, the average price of regular-grade gas is $2.13 a gallon — lowest since May 2009 — and down $3.31 from year-ago levels. Crude oil and wholesale gas prices slumped after Goldman Sachs and Societe Generale joined Citigroup and Commerzbank among the latest investment banks to slash price estimates. And without production cuts, there appears to be more room for lower prices. Were going to keep on going lower, says industry analyst Brian Milne of energy manager Schneider Electric. Even with fresher new lows, theres still more downside.
Posted on: Tue, 13 Jan 2015 08:13:04 +0000
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