Current Crude Oil Price Drops to Lowest in Six Months

The current crude oil price dropped to its lowest in six months due to worries that Europe’s economic uncertainty can negatively affect crude demand.

A reduction of 80 cents was posted by Benchmark West Texas Intermediate crude prices to finish the New York trading at $93.38 a barrel. Oil has not reached that low level since the 19th of December.

Since May started, the oil price has decreased by 11 percent. The latest signs of Europe’s economic weakness as well as other parts of the world led to questions regarding the energy demand’s strength.

Experts have been making forecasts of the world’s demand for oil in the short-term. Simultaneously, Saudi Arabia together with other countries that are rich in oil has raised production. Both have placed pressure on oil prices.

The recent question was where Europe is directed.

Recently, the euro dropped to another low for the fourth month versus the dollar. A stronger dollar leads to more costly oil prices for investors that trade using other currencies.

In the United States, gasoline prices stayed flat at $3.727 a gallon according to the Wright Express, AAA and Oil Price Information Service. One gallon of regular unleaded gas has decreased by almost 21 cents since reaching a high level of $3.936 in the early parts of April.

According to Mastercard SpendingPulse, the group that estimates the demand for gasoline across the U.S., drivers purchased less gasoline for the 60th straight week. Its estimate for consumption of gasoline over a period of four weeks fell by 5.2% at 61.1 million barrels.

Elsewhere in the energy markets, the cost of heating oil increased by less than a cent to finish at $2.933 a gallon. Wholesale gasoline price declined by 1.49 cents to reach $2.9441 a gallon. Natural gas gained 6.9 cents for a price of $2.50 per 1,000 cubic feet.

In London, an additional 45 cents was gained by Brent crude prices to reach $111.45 a barrel. Brent crude is used to assign the price of U.S.-imported oil.