Oil extends drop on concerns of high supplies

[November 02, 2013]  NEW YORK (AP) -- The price of oil fell to the lowest level in more than four months Friday as concerns over high supplies continued to discourage investors.

Benchmark U.S. crude for December delivery dropped $1.77 to close at $94.61 a barrelon the New York Mercantile Exchange. The 1.8 percent drop to start November follows a nearly 6 percent decline in the price of oil in the month of October.

Ample supplies of crude have weighed on the price in recent weeks. The Energy Department said Wednesday that U.S. supplies increased 4.1 million barrels last week. Over five weeks, supplies have risen by more than 25 million barrels.

Brent crude, a benchmark for international crude also used by U.S. refineries, fell $2.93 to $105.91 a barrel on the ICE exchange in London.

In other energy futures trading on Nymex:

• Wholesale gasoline slipped 4 cents to $2.55 a gallon.

• Heating oil shed 7 cents to $2.88 a gallon.

• Natural gas dropped 7 cents to $3.51 per 1,000 cubic feet.

[Associated Press]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.