Thursday, May 05, 2011

Oil Drops Below $100

The price of a barrel of oil is significantly lower today than it was just a day earlier. On news that the unemployment rate may increase, as well as other troubling economic figures, oil declined precipitously.

After gaining to over $110 earlier last month, it has now dropped below $100 a barrel.

"The longer-term bull cycle is still in place, but this correction may have a life span of several months, as weaker economic data is fueling this correction to a large part," said Sterling Smith, senior analyst for Country Hedging Inc in Minnesota.
  It is currently trading at $99.07. How long it will stay below $100 is unclear.

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