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