Oil Prices Fall Following Jobs Report

By: Associated Press
By: Associated Press

Oil prices fell below $88 Friday after the government reported that the U.S. economy continues to add jobs, although not at the pace many experts had hoped for.
The economy added 103,000 jobs in December and figures for October and November were revised upward. More jobs means more cars will join the morning commute, which should boost gasoline consumption in the U.S., experts said.
Those who are commuting are paying the highest price for gas in the month of January since paying around $3.11 a gallon on this date in 2008. The national average is now about $3.083 per gallon.
That's because oil prices rose 22 percent from Labor Day through the end of the year. Although oil prices declined this week, they did hit a two-year high on the first day of trading in 2011. And pump prices still went up a penny. Despite the drop in oil, many experts think the price of a barrel will surpass $100 this year. And gas prices generally rise between the start of the year and Memorial Day.
Benchmark crude for February delivery declined $1.10 to $87.28 per barrel on the New York Mercantile Exchange.
Retail pump prices added less than a penny overnight to a new national average of $3.083 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded is 11.5 cents more expensive than the same time last month and 37.4 cents higher than it was last year.
OPIS said that if gasoline follows historic trends, then they should rise to more than $4 per gallon in at least 15 states by Memorial Day.
In other Nymex trading for February contracts, heating oil fell 3.95 cents to $2.4775 and gasoline futures dropped 4.15 cents to $2.4015 per gallon. Natural gas gave up 6 cents to $4.374 per 1,000 cubic feet. In London, Brent crude lost 49 cents at $94.03 per barrel.

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  • by Anonymous on Jan 10, 2011 at 08:32 AM
    lets pray gas prices come down.It may not hurt the rich ones.The low incomes and fixed incomes will hurt a lot over these prices.Not only will these prices of gas keep many from spending money on other things that helps the economy but will stop many from going when needed.The car companies want us all to buy small electric cars and so on.NOT all can do this,or even want to.Plus we know it is income tax returns time of the year.So lets take every dime people have to offer.Tax on gas in Mich is bad enough and all using gas to heat homes with.Really,Don't the greedy ones see the long time effects of their greed.The gas prices are only going to keep this country from healing,and raise prices of many things to shop by trucks ect.Prices that will never go down.No recovery at this point.Shame on many.
  • by Lacy on Jan 7, 2011 at 05:00 PM
    They need to lower the gas prices for everyone. Especially for the health care teams that do home care that do not get paid mileage . The gas prices are not helping this work force @ all!
  • by steve Location: lansing on Jan 7, 2011 at 04:37 PM
    so why did gas price go up friday. and we will never see them go under 3 dollars a gallon for a long time
  • by Anonymous on Jan 7, 2011 at 12:53 PM
    yesterday on the Today show, it was said that gas prices will hit over $5.00 a gallon by the end of this year. Makes you want to run right out and buy a big SUV.
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