Oil prices tumble to lowest levels of 2010
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Last Updated: Thursday, January 14, 2010, 09:15
New York: Oil and gas prices plunged to their lowest levels of the year on Thursday after the US government reported that supplies grew more than expected.

The Energy Information Administration said that the United States' oil supply swelled by 3.7 million barrels last week, well above the average for this time of year. Gasoline supplies grew by 3.8 million barrels.

The country's demand for petroleum products also fell by nearly 1 percentage point from last year, showing the country has an even smaller appetite for energy now than when it was in recession.

Prices tumbled shortly after the report.

Benchmark crude for February delivery gave up USD 1.48 to USD 79.31 a barrel on the New York Mercantile Exchange. Crude fell as low as USD 78.37 earlier in the day.

Oil prices had been surging all month, rising to a 15-month high near USD 84 a barrel as a bitter chill swept across parts of the US, Europe and Asia.

The rally in crude has tugged retail gas prices higher every day since Christmas. Pump prices increased again overnight by less than a penny to a new national average of USD 2.757 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.

A gallon of regular unleaded is nearly one dollar more expensive than a year ago.

In other Nymex trading in February contracts, heating oil fell 5.15 cents to USD 2.0803 a gallon and gasoline dropped 4.44 cents to USD 2.0534 a gallon. Natural gas futures lost 5.2 cents to USD 5.539 per 1,000 cubic feet.

Bureau Report

First Published: Thursday, January 14, 2010, 09:15

Tag: OilPricePetrol
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