NEW YORK (AP) - The price of oil fell nearly 2 percent Thursday as the global economic slowdown took a toll on China.
China, the world's second-largest oil consumer behind the U.S., has been propping up oil demand as its economy expanded. But a drop in its export growth last month showed that it's been affected by the sluggish U.S. and European economies. Consumers are spending less and buying fewer Chinese products. If China's exports continue to cool off, its economy will slow and its appetite for oil will diminish.
"We're interconnected," independent analyst Andrew Lipow said. "A slowdown in consumption in the U.S. and Europe is being felt over there."
Benchmark crude fell $1.34 to end the day at $84.23 a barrel in New York. Brent crude, used to price many international kinds of oil, fell 25 cents to finish at $111.11 a barrel in London.
9. I Assume It's Because These Massive Pools of Wealth
are looking for a return. They've abandoned real estate, are cool about stocks and bonds, and so they go into commodities. Sucks for everyone else. But at some point it is likely the worm will turn and oil will drop again.
The last price given was $102.62 for August; peak import prices were in May/June at $108/$106. Because the import price of oil changes more slowly than the day-to-day pricing, price increases lag somewhat. Some of the pricing is done by contract!
Notice that gas pricing peaked before average oil import prices did; the fall in spot pricing has meant that some buying is being done at cheaper prices. Also demand for gas has been sluggish, which is pushing pricing down some. But until import pricing drops quite a bit, we will still have high gas prices.
6. the jumps are looney(.30) whereas the drops are always small (.10 or less)
A friend in OH said that his gas station raised prices 30 cents 3 different times within a week a few months back, but it'd only drop 5-10 cents every week. They're making more profit than ever (big oil) so clearly, they're screwing the consumer with no worries.
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