Oil slides nearly 3%
Oil prices fell Thursday, as stocks got hammered on worries about spreading European debt problems.
What prices are doing: Crude for June delivery, the active contract which expires Thursday, slipped $1.86, or 2.66%, to settle at $68.01 a barrel.
The July contract, which will become active on Friday, also fell about 2.32% to $70.80 per barrel.
Gasoline prices fell for the 14th consecutive day, slipping to $2.840 a gallon from $2.852 the day before, according to a survey by motorist group AAA.
What’s moving the market: The Dow, Nasdaq and the S&P 500 all fell about 2% Thursday. Stocks sold off as the dollar continued to pressure the euro, which has been hitting four-year lows in recent days.
Because oil is priced in dollars, a stronger greenback makes it more expensive for foreign buyers of crude.
Overall, oil prices have fallen by about $15 per barrel in the past month, as traders worry that economic instability in Europe may cut demand for fuel payday loans no faxing.
Investors are also concerned about growing oil stockpiles that are rising faster than demand can keep up. That discourages traders from holding the next month’s futures contracts. Oil traders are also closing out their June futures contracts Thursday, to move on to July.
What analysts are saying: Dismayed by volatile equities markets in Europe and the U.S., investors are looking to take risk off the table and pull back from oil, said Phil Streible, senior market strategist with futures broker Lind-Waldock.
But oil’s recent lows in the high $60s should spark new interest from buyers, he said.
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