Why Your Gas Might Get Cheaper
The price of oil is falling on increased speculation that the U.S. will release oil from reserves to ease the commodity’s rising cost.
Oil prices are up more than $8 per barrel this month. Releasing crude from the Strategic Petroleum Reserve would boost the supply of oil, which would drive prices lower. Oil was previously released due to conflict in Libya and after Hurricane Katrina.
Forecasts for Tropical Storm Isaac also moderated, easing concerns that the storm would damage to key oil and gas operations in the Gulf of Mexico. The National Hurricane Center predicts it will grow to a Category 1 hurricane.
About one-quarter of the nation’s oil is produced in the Gulf of Mexico.
Crude lost $1.28 to $94.86 in morning trading Monday on the New York Mercantile Exchange.
Oil prices are up more than $8 per barrel this month. Releasing crude from the Strategic Petroleum Reserve would boost the supply of oil, which would drive prices lower. Oil was previously released due to conflict in Libya and after Hurricane Katrina.
Forecasts for Tropical Storm Isaac also moderated, easing concerns that the storm would damage to key oil and gas operations in the Gulf of Mexico. The National Hurricane Center predicts it will grow to a Category 1 hurricane.
About one-quarter of the nation’s oil is produced in the Gulf of Mexico.
Crude lost $1.28 to $94.86 in morning trading Monday on the New York Mercantile Exchange.
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