Oil Prices Drop to Under $130 a Barrel

NEW YORK --- Oil prices fell Thursday, May 29, after the Energy Department reported major declines in crude inventories -- a result of temporary delays in unloading oil tankers along the Gulf Coast, the Associated Press reported.

Light, sweet crude for July delivery fell $1.45 to $129.58 a barrel on the New York Mercantile Exchange. Prices were more than $2 lower in morning trading before the EIA report was issued, the AP reported. However, prices rose by more than $2 a barrel immediately after the report's release before turning lower again.

Meanwhile, retail gas prices climbed to above $3.95 a gallon.