Oil Price Below $99 On New Europe Debt Concerns

Published January 13, 2012 5:18PM (EST)

NEW YORK (AP) — Oil prices are lower Friday on fresh concerns about Europe's economy.

Benchmark crude fell by 49 cents to $98.61 per barrel in New York at midday. Brent crude, which is used to price foreign oil that's imported by U.S. refineries, fell by 67 cents to $110.38 per barrel in London.

Prices dipped on reports that credit ratings agency Standard & Poor's will downgrade France and Austria. The Financial Times reported that those countries will drop a notch from triple-A to AA+.

A downgrade could make it harder for the European Union to raise money and overcome massive government debts. A recession already is expected in the eurozone, and huge spending cuts will likely cut 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 2 cents to $3.04 per gallon, while gasoline futures rose 1 cent to $2.74 per gallon. Natural gas fell 4 cents to $2.66 per 1,000 cubic feet.

By Salon Staff

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