Oil drops below $90 for 1st time since Nov. 1

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Posted: May 23, 2012 11:18 AM
Source: Associated Press

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Topics: oil, money, economy, gas

NEW YORK- The price of oil has dropped below $90 for the first time in nearly seven months as U.S. supplies continue to grow.

Benchmark U.S. crude fell to $89.92 per barrel around noon Eastern time in New York. The price hadn't been below $90 per barrel since Nov. 1. It's now at $90.07, down $1.78, or about 2 percent.

Oil fell after the U.S. said that oil supplies grew last week to the highest level since 1990. The price tends to fall as more supplies become available.

Oil has been falling this month on expectations that the European economy will keep slowing down, cutting into what's expected to be record growth in world demand.

Analysts also say Iran may avoid an oil embargo after easing West fears over its nuclear program.

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