Oil Price Below $99 On Europe Downgrade Concerns


Salon Staff
January 14, 2012 3:45AM (UTC)

NEW YORK (AP) — Oil prices finished lower Friday on fresh concerns about Europe's economy as credit ratings agency Standard & Poor's downgraded France, Austria and other European countries.

Benchmark crude fell by 40 cents to end at $98.70 per barrel in New York. Brent crude, which is used to price foreign oil that's imported by U.S. refineries, fell by 70 cents to end at $110.35 per barrel in London.

Advertisement:

S&P downgraded the government debt of France, Austria, Italy and Spain, but it kept Germany's at the coveted AAA level. S&P cut its ratings on a total of nine eurozone countries.

The downgrades could make it harder for the European Union to raise money and overcome massive government debts. A recession appears likely in Europe, and huge spending cuts will likely reduce European energy demand this year.

In the U.S., gasoline pump prices rose 1 cent to a national average of $3.39 per gallon, according to AAA, Wright Express and Oil Price Information Service.

In other energy trading, heating oil fell 3 cents to finish at $3.03 per gallon, while gasoline futures were virtually unchanged at $2.73 per gallon. Natural gas fell 3 cents to $2.67 per 1,000 cubic feet.


Salon Staff

MORE FROM Salon Staff

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••





Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •