Current Crude Oil Prices Fall below $95

Current crude oil prices dropped below $95 a barrel, indicating that the commodity has established a comfortable steady level at the moment.

The crude oil price per barrel fell from its high rate of over $97 in the morning trading to its closing level of $94.67, in spite of some developments that are usually price boosters.

Inventories of crude oil fell by 7.426 million barrels in the past week to a five-month low, according to the Energy Information Administration of the U.S.

In Germany, European Central Bank President Mr. Mario Draghi made an announcement of a bond buying program that led to a surge in equity prices, pushing the index of Standard & Poor’s to its four-year high.

In the U.S., service-oriented industries posted jobs growth for the 37th straight month, according to the Institute of Supply Management. In August, there was an additional 201,000 jobs in the private sector, a number which greatly exceeded the consensus prediction by almost 60,000 jobs.

Energy traders shrugged off all of these and consequently reacted as though they felt that the crude oil price per barrel was too high.

In the NYMEX, the price of natural gas was $2.753 per million BTU, a drop of 7.2 cents . Heating oil prices were at $3.16335, a decline of 0.9-cent. The price of reformulated blendstock gasoline is $2.9835 a gallon, 0.75-cent fall.

Meanwhile, prices at the pump fell from its rate during the previous day of $3.824 to the current gasoline price average of $3.823, according to the report of the AAA.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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