Crude oil prices fall in New York, London

The price of crude oil feel substantially in New York trade Monday, mostly on worries about demand erosion after last week’s employment report from the US Labor Department and on declines in equities markets.

Also pushing prices down was a projection from Goldman Sachs that rising oil inventories could push oil prices as low as $30 per barrel in the current quarter.

The declines came even though there was speculation that the Organization of Petroleum Exporting Countries could cut production again when it meets in March.

Additionally, there was a possibility that the demand for heating oil could rise as the coldest weather of the year was predicted to settle into parts of the United States.

West Texas Intermediate crude for February delivery was down $3.24 to $37.59 per barrel at the close of floor trade on the New York Mercantile Exchange while Brent crude fell 95 cents to $43.47 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade in New York, Nymex February gasoline futures were down 4 cents to $1.08 per gallon while February heating oil was down a cent to $1.47 per gallon but March natural gas added 5 cents to $5.54 per million British thermal units.

After gains recently, the retail price of gasoline in the United States dropped 0.2 cents overnight to $1.79 per gallon, according to AAA.