Crude prices drop on US gdp data

Crude oil prices were lower in afternoon trade on Friday on disappointing gross domestic product data from the US Commerce Department and on the postponement Thursday night of a vote in the House of Representatives regarding raising the debt ceiling in the United States.

September contracts for West Texas Intermediate crude were down $1.66 to $95.78 per barrel at nearly 2 p.m. on the New York Mercantile Exchange, while Brent crude was last reported down 82 cents to $116.54 per barrel on the ICE Futures Europe exchange in London.

The Commerce Department reported that the US gdp expanded by 1.3 percent in the second quarter, against an expected gain of 1.6 percent, while first quarter growth was revised downward to just 0.4 percent.

A vote on a Republican plan to raise the debt ceiling in the United States was postponed at the last minute in the House of Representatives Thursday night after it became clear that there were not enough votes to pass the measure, making it more likely that there will be no agreement on the issue before a deadline next Tuesday.

Meanwhile, the Bureau of Ocean Energy Management, Regulation and Enforcement reported that 6.8 percent of oil production and 2.8 percent of gas production in the Gulf of Mexico was shut ahead of Tropical Storm don, which is expected to reach the coast of Texas later today or early Saturday morning.

Nymex August gasoline futures were down 2 cents to $3.09 per gallon in afternoon trade while August heating oil futures also dropped 2 cents to $3.09 per gallon and September natural gas futures were 9 cents lower to $4.16 per million British thermal units.

The retail price of gasoline in the United States were up overnight to $3.71 per gallon on average nationally for regular unleaded.