Tuesday, October 9, 2012

Oil prices fall after warning from World Bank

(AP) ? A strong warning from the World Bank that growth in Asia may slow further dragged down the price of oil Monday.

The World Bank signaled the possibility of a "more pronounced slowdown" in China, the world's second largest economy after the United States. It also cut its growth forecast for Asia. Red-hot growth in emerging markets like China and India helped boost oil consumption coming out of the global recession.

Benchmark crude fell 74 cents to $89.14 in morning trading in New York. The contract hasn't closed lower since Aug. 2.

At the pump, gas prices remain stubbornly high. The national average for gasoline rose 3 cents over the weekend to $3.818 a gallon. But Californians are now paying an average of $4.668 a gallon, the highest price in the nation, after a jump of 50 cents in the past week. Some motorists there are paying over $5.

In response, Gov. Jerry Brown has ordered state smog regulators to allow cheaper winter-blend gas to be sold three weeks early in the state. And Sen. Dianne Feinstein has called for a federal investigation because she doesn't think the higher prices are related to supply and demand.

Experts are predicting prices in California could climb to an average of $4.85 before coming down.

In London, Brent crude, which is used to price international varieties of oil, fell 36 cents to $111.66.

Other futures in morning trading:

? Natural gas fell 2 cents to $3.37 per 1,000 cubic feet.

? Heating oil was flat at $3.16 per gallon.

? Wholesale gasoline fell 2 cents to $2.93 per gallon.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-10-08-Oil%20Prices/id-1440c3d7501a48738889228e062e9073

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