Oil below $103 amid possible reserves release
NEW YORK - March 29, 2012 (WPVI) -- Oil dipped below $103 a barrel and finished at a six-week low Thursday on expectations that the U.S. and Europe will release crude reserves to push energy costs lower.
Benchmark oil for May delivery lost $2.63, or 2.5 percent, to settle at $102.78 a barrel on the New York Mercantile Exchange. Brent crude for May delivery fell $1.77 to end at $122.39 per barrel in London.
France's prime minister said Thursday that there's a "good chance" that the U.S. and Europe will agree to release some of their oil reserves. The White House has been mum about any future plans for the nation's Strategic Petroleum Reserve.
The stock release would seek to lower prices, which have been driven higher in recent months by fears that a potential military attack by Israel or the U.S. on Iran's nuclear facilities would disrupt crude supplies. Analysts worry that a further spike in crude prices will spark inflation and hurt consumer spending.
In other energy trading in New York, natural gas prices tumbled to a 10-year low after a surprising jump in U.S. supplies.
The futures price dropped sharply after the government reported that natural gas inventories expanded well beyond what analysts expected. The U.S. total supply grew by 57 billion cubic feet last week to a level that's now 59 percent above the five-year average.
There's enough gas in storage to supply all the country's needs for more than a month, and analysts say storage facilities across the U.S. will be pushed close to capacity in coming months.
Natural gas futures plunged by 13 cents, or 5.7 percent, to finish at $2.15 per 1,000 cubic feet.
Heating oil fell 5 cents to end at $3.16 per gallon and gasoline futures were down about a half-cent to finish at $3.40 per gallon.
gas prices, business/finance
- Photos: Pictures from Easter Sunday services
- AccuWeather: Easter to be comfortable, breezy
- Get the 6abc StormTracker app
- WATCH: Action News Online
- Video: 5,000 turn out for Easter service in Mt. Airy
- Pope Francis, huge crowd joyously celebrate Easter 53 min ago
- Boxer Rubin 'Hurricane' Carter dies at 76 51 min ago
- Man shot, killed in Gloucester Twp. apartment
- Man found shot in minivan in Tioga-Nicetown 52 min ago
- Girl hospitalized after near-drowning in Philly hotel
- 2 injured after car hits Camden police cruiser
- Man targeted in Collingdale hit-and-run ID'd
- Divers pull more bodies from sunken South Korean ferry
- Video: Snowmobiler charged by angry moose