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Market Commentary and Intraday News

Oil drops below $92 on gloomy economic outlook

242 days ago

By The Associated Press

The price of oil is lower on more doubts about global economic strength.

Benchmark crude dropped $1.13 at $91.76 Monday in New York. Oil fell more than 6 percent last week.

In London, Brent crude was down $1.85 to $109.57 on the ICE Futures exchange.

Monday's dose of gloomy economic news game from Germany, where the Ifo index of business confidence fell for the fifth month in a row.

Optimism about recent stimulus measures by central banks in Europe, Japan and the U.S. has given way to pessimism about the global economy's prospects. When economic growth slows, so does demand for fuel.

The news for drivers in the U.S. is somewhat positive. AAA says the average price for gasoline slipped about 2.5 cents over the weekend to $3.808 per gallon.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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