Oil drops near $92, at lowest level since June

AP News
Posted: Nov 27, 2013 12:02 PM

The price of oil dropped to the lowest level since early June as the U.S. government reported the 10th straight weekly increase in crude oil supplies.

Meanwhile, the average price of gasoline is the lowest heading into the Thanksgiving holiday weekend since 2010.

Benchmark U.S. crude for January delivery was down $1.53 at $92.16 a barrel on the New York Mercantile Exchange around midday, after dropping to $92.04 earlier. Trading volumes were low ahead of Thursday's Thanksgiving holiday.

Oil has declined from around $104 in early October due to a muted outlook for demand, high supplies and reduced tensions in the oil-rich Middle East.

Crude supplies increased by 3 million barrels, or 0.8 percent, in the week ended Nov. 22, the Energy Department said Wednesday. The nation's supply of crude oil is now 391.4 million barrels, which is 4.6 percent above year-ago levels and "well above the upper limit of the average range for this time of year," the report said.

At the gas pump, the average price for a gallon of gasoline is $3.29, according to AAA. While that's up 8 cents from a week ago, it's still down 14 cents compared the day before Thanksgiving last year. Two years ago, the average was $3.33.

Brent crude, a benchmark for international oils, was down 24 cents at $111.64 a barrel on the ICE exchange in London. Brent's rise and widening spread to the Nymex contract was attributed to new disruptions of oil exports from Libya, a key supplier to European markets.

In other energy futures trading on Nymex:

— Wholesale gasoline was flat at $2.68 a gallon.

— Heating oil was flat at $3.04 a gallon.

— Natural gas rose 1 cent to $3.88 per 1,000 cubic feet.