NEW YORK (AP) — Oil dropped below $100 a barrel Monday for the first time since early July as U.S. supplies keep rising and the risks of disruption to Middle East shipments subside.
U.S. benchmark crude fell $1.59, or 1.6 percent, to close at $99.22 a barrel on the New York Mercantile Exchange. Oil has now dropped 8 percent in the month of October.
The nation's crude oil supplies rose by 4 million barrels in the week ended Oct. 11, the government said Monday, in a report that was delayed five days due to the government shutdown. Analyst expected a smaller increase of 2.25 million barrels. U.S. refinery output has slowed from a torrid pace over the summer, reducing demand for oil.
At 374.5 million barrels, the U.S. crude oil supply was 1.4 percent above year-ago levels and the highest since July, as of Oct. 11. The supply report for last week will be released Wednesday.
Other factors weighing on oil prices in the past weeks include the agreement to dismantle Syria's chemical weapons and apparent progress between Iran and world powers.
"Can anyone remember a time where the possibility of a potential future attack on Iran did not figure into the equation of the price of oil?" wrote Phil Flynn, senior market analyst at The PRICE Futures Group, in a note to clients.
Brent crude, the international benchmark, dropped 30 cents to $109.64 a barrel on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
Pablo Gorondi in Budapest contributed to this report.
Copyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you