Price of crude oil falls below US$101 a barrel as U.S. stock markets drop


The price of oil dropped below US$101 a barrel Friday after disappointing earnings in the U.S. prompted declines in the stock market.

Benchmark West Texas Intermediate crude for June delivery shed $1.34 to close at US$100.60 on the New York Mercantile Exchange. Oil finished the week with a decline of US$3.70 a barrel, or 3.5 per cent.

Brent crude, an international benchmark oil, fell 75 cents to US$109.58 on the ICE Futures exchange in London.

Weak earnings from Ford and Amazon, in particular, helped dent sentiment in U.S. stock markets.

A drop in Ford sales in the U.S. suggested consumer spending on transportation and fuel in the world’s largest economy might not remain as strong as expected. The Dow Jones industrial average and the broader Standard & Poor’s 500 index each dropped about 0.8 per cent.

In other energy futures trading on the Nymex, wholesale gasoline declined one cent to US$3.08 a U.S. gallon (3.79 litres), heating oil fell three cents to US$2.99 a gallon and natural gas fell six cents to US$4.65 per 1,000 cubic feet.


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