Current crude oil prices slide further, gas prices follow suit

Unfavorable news about the worlds’ economies have triggered current crude oil prices to fall on Thursday, reaching a record low below $80, which was last seen in October 2011.

Oil markets were affected by news indicative of declines in China’s manufacturing sector. Orders were down according to polls conducted on China’s manufacturers. EU’s manufacturing industry wasn’t spared either as indexes remained at very poor levels.

Summit Energy Services analyst Matt Smith disclosed that prices were hit and current trends are being heavily influenced by worsening stats on the economy.

U.S. jobless claims and the Fed’s pronouncements on keeping rates low negatively affected oil markets, causing oil prices to slide down further.

Oil Price Information Service Chief Analyst Tom Kloza revealed that a declining crude oil price isn’t merely tied to global economic issues. Too much optimism on the North American oil boom could be another trigger.

U.S. crude has flooded the market unexpectedly. This has bumped-off the need for sweet crude coming from international suppliers who were making deliveries under their usual schedules.

Prices of gasoline took the same trend as those of crude oil as they dipped to below $3.472 a gallon last Thursday.

Furthermore, as summer driving months abound, pump prices will decline further. Come Election Day in the United States, average price per gallon of gas would drop to below $3. Cheap crude will prompt U.S. oil refineries to maximize capacities despite weakening demand.

Meanwhile, an oil trader confirmed that oil prices normally go down during these months. June is really a weak period for crude oil prices.

Despite these oil price drivers, crude oil price per barrel are not likely to nosedive by further, likely to settle within the $70 to $79 range within the next 10 days or so, unless a major Lehman-style financial crisis occurs.