Oil Drops Below $100 for First Time in Five Months
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Crude oil on the futures market briefly sank below the $100-a-barrel today for the first time in five months — suggesting investors believe a worsening global economy will continue to drive down demand for some time in America and elsewhere.
The last time crude traded below $100 a barrel was on April 2.
Gasoline prices, however, jumped at the wholesale level as Hurricane Ike swept toward Houston, home to about one-fifth of America’s refining capacity, and the site of a major fuel and grain distribution channel.
Wholesale gasoline prices on the Gulf Coast moved even further into uncharted territory to around $4.85 a gallon ($1.28 a liter), as refineries anticipated that Ike would incur at least a significant pause in their operations, and at worst severe damage to their facilities.
