On Monday, the average price for a gallon of unleaded was $3.88, according to AAA. Oil keeps dropping. See below.
Oil falls as worries about Europe continue
NEW YORK (AP) — Concerns about the European financial crisis are still dragging down the price of oil.
Benchmark crude for July delivery fell 32 cents to $92.69 per barrel in Monday midday trading on the New York Mercantile Exchange. The July contract expires on Tuesday, and most of the trading has switched to the August contract, which dropped 33 cents to $93.07 per barrel.
All eyes remain on Greece, which is trying to implement tough new austerity measures necessary to keep international aid coming to help deal with its debt crisis. Without that aid, investors worry that Greece’s financial troubles could spread to other European countries.
Credit ratings agency Moody’s has warned that it may downgrade its debt rating on three of France’s largest banks because of their exposure to Greek debt. Moody’s said Monday that it may reduce Italy’s credit rating due to that country’s poor growth prospects and high public debt.
“The fear is that we end up with a banking crisis like 2008,” said Michael Lynch, president of Strategic Energy & Economic Research. “It’s a small possibility, but people are reacting to that.”
Oil held just below $93 per barrel despite rising stock markets. The Nasdaq and the Standard & Poor’s 500 index were up about 0.7 percent while the Dow Jones Industrial average rose nearly 0.8 percent.