Demand concerns send crude oil prices lower

Crude oil prices dropped before the close of floor trade in New York as traders worried about a report that seemed to predict a slowdown in the US economy that could mean decreased demand for oil and products made from it.

In addition, a prediction from the National Oceanic and Atmospheric Administration that the first part of the winter will be warmer than normal in the eastern two-thirds of the US also foretold a drop in demand.

West Texas Intermediate crude for February delivery dropped 18 cents to $91.06 per barrel on the New York Mercantile Exchange while February contracts for Brent crude was down 60 cents to $90.88 per barrel.

Nymex January gasoline traded even at $2.33 per gallon while February heating oil was down almost a cent to $2.5895 per gallon.

March natural gas dropped 4 cents to $7.31 per million British thermal units after the Energy Information Administration reported that stockpiles were down by 131 billion cubic feet last week, less of a decline than had been anticipated.

At-the-pump prices for gasoline in the United States dropped another half cent overnight to $2.985 per gallon on average nationwide.