Wednesday, October 19, 2011

Oil lower with plan for European debt elusive (AP)

NEW YORK ? Oil prices are lower as Europe's ongoing debt crisis fuels concerns about future energy demand.

Benchmark crude on Monday fell 52 cents to $86.28 per barrel in New York, while Brent crude, used to price international varieties of oil, fell $1.47 at $110.76 in London.

Oil has tumbled 24 percent since May on fears of a slowdown in the global economy. Investors focused on weak gasoline demand in the U.S. and budget problems in Greece.

Prices had started to rise last week as European leaders appeared to be near a turning point. But on Monday German finance chief Wolfgang Schaeuble dampened expectations that they'd hammer out a comprehensive solution at an upcoming summit.

Meanwhile, U.S. factories produced more goods in September for the third month. The 0.4 percent increase in factory output was taken as a sign that the economy is still growing, albeit slowly.

Gasoline pump prices rose a half penny to a national average of $3.462 per gallon, according to AAA, Wright Express and the Oil Price Information Service. A gallon of regular has fallen about 52 cents from its peak near $4 per gallon on May 5, but it's still nearly 63 cents higher than the same time last year.

In other energy trading, heating oil lost 3.2 cents at $3.0236 per gallon and gasoline futures lost 6 cents at $2.7599 per gallon. Natural gas lost 4 cents to $3.659 per 1,000 cubic feet.

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20111017/ap_on_bi_ge/oil_prices

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