Oil Prices Drop by More than $1 a Barrel
NEW YORK --- Oil prices dropped by more than $1 a barrel Friday. Meanwhile, analysts predicted that having adequate global supplies during a seasonal period when demand is low could prompt more selling, at least until winter heating demand begins, according to an AP report. Slowing economic growth in the U.S., coupled with receding fears about hurricane season, have also prompted oil prices to drop more than 20 percent since the middle of July. The price of oil fell 4 percent just this week. Nonetheless, a potential OPEC production cut has led to some buying in recent days among bargain hunters who believe oil is fairly priced at around $60 a barrel. But many traders expect crude futures to eventually fall below that key psychological threshhold, the AP reported. Light sweet crude for November delivery declined $1.07 to $60.52 a barrel in afternoon trading on the New York Mercantile Exchange. November Brent crude on London's ICE futures exchange declined 64 cents to $60.70 a barrel. In addition, Nymex futures prices for natural gas, gasoline and heating oil declined.