The price of crude oil last week had its largest weekly loss since May, with poor economic news all around pushing oil below $90 a barrel.
Oil closed Friday on the New York Mercantile Exchange at $86.88 a barrel, down $8.82 from the Friday before.
The Commerce Department’s announcement that consumer spending fell for the first time in two years, coupled with a slower than expected second quarter economic growth number helped fuel the drop.
Analysts said crude is likely to remain below $90 a barrel for a few weeks, and some economists have even predicted it could drop below $85.
“Oil prices saw sharp reductions late last week before the S&P announced a reduction in the U.S. credit rating to AA+. Now that the nation’s credit rating is reduced, we can expect oil prices to drop even further,” said Jessica Brady, spokesperson, AAA Auto Club South.
While not such a good economic indicator, the news is good for drivers.
“Retail gas prices have already started to fall and consumers will see further reductions at the pump throughout the week,” Brady said.
The national average price of regular unleaded gasoline is $3.67 per gallon, a 3-cent decrease from last week.
Florida’s average price of $3.67 reflects a 4-cent decrease, AAA said.
