Saturday, July 27, 2013

Oil falls, has 1st weekly decline since mid-June!

Well the price of oil has fallen. I wonder why this is? Well apparently it is the first weekly decline since June. I still can't help to be weary and think this is a ploy by speculators or some foreign government like China. Well any way there seems to be a lot of interest building so it is bound for change for some reason. If the economy continues to improve then there will be a happy medium met and then we will not get too bad of an inflation effect. I also think that alternative energy is starting to take its toll on big oil. It is only a matter of time. Don't forget to subscribe or follow us. Thanks.
Here is the original story that was posted by the Associated press.

 


NEW YORK (AP) — The oil market cooled off this week following some lofty gains.
Oil fell 79 cents to close at $104.70 Friday in New York. For the week, the price of oil fell $3.35, or 3.1 percent, the first weekly decline since mid-June.
Drivers saw a bit of relief. The average price of gasoline fell 2 cents over the past week to $3.65 a gallon. That's still 11 cents higher than a month ago.
China, a major energy consumer, played a big role in this week's decline in the price of oil. Traders were concerned over the country's decision to press ahead with painful economic restructuring and forgo another round of stimulus even though growth has slowed.
Oil is still up $11, or 12 percent, since June 21, when it fell to $93.69. It broke above $100 on July 3 for the first time since May 2012 and peaked at slightly more than $109 on July 19. The rise was mostly due to falling U.S. crude stockpiles and increased interest from financial investors.
Oil's rise pushed up pump prices. Starting on July 8, the average price for a gallon of gas rose for 11 straight days, going from $3.47 to $3.67, before leveling off. At $3.65, the price is still 16 cents more expensive than at this time last year.
According to the price-search website GasBuddy.com, four states have average prices above $4 a gallon: Hawaii, Alaska, Connecticut and California. At this time last year, only Hawaii topped $4.
At the low end, six states have average prices below $3.50: Virginia, Arkansas, Tennessee, Mississippi, Alabama and South Carolina, the lowest in the nation at $3.33.
In London, Brent crude, which is traded on the ICE Futures exchange, fell 48 cents to $107.17 a barrel.

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