John Wilen for the Associated Press reports that oil dropped $4.17 to $106.04 a barrel after hitting a high of $111.80. The price of diesel fuel rose to a new record, above $4 a gallon, and the price of a gallon of gas stayed high.
Some analysts are saying the oil is in a bubble – especially since the price keeps rising, but demand growth predictions have been lowered and supplies are higher.
Oil ETFs were down in trading today. Will there be a rebound, or are investors beginning to get skittish?
- iShares Dow Jones U.S. Oil & Gas Exploration Index (IEO), down 5.6% intraday
- Oil Services HOLDRs (OIH), down 4.5% intraday
- United States Oil (USO), down 3.6% intraday
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.