LONDON (Reuters) - Oil prices fell on Monday, extending Friday's sharp drop, after the release by industrialized nations of emergency stocks to prevent a U.S. fuel crisis after Hurricane Katrina.
Worries about U.S. consumer confidence and the impact on economic growth and fuel demand from Katrina also undermined the oil market.
London Brent crude closed down $1.22 at $64.84, close to levels seen before Katrina disrupted U.S. Gulf oil production and refining operations. U.S. crude, shut for Labor Day, finished at $67.57 a barrel on Friday after peaking a week ago at a record $70.85.
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Well, are we seeing a "sharp drop" in our local gas prices because of this? I mean, we saw 40- and 50- and 60-cent per gallon hikes last week based on the "probability" that oil prices would rise in the wake of Hurricane Katrina, so doesn't it stand to reason that our prices would then sharply drop 40- or 50-cents per gallon today because of the news since Friday?
Oh, wait, it's the oil companies. What was I thinking?
Gas should be 40 cents less per gallon than the cheapest price I see in Peoria today ($2.95 at a Clark station on Sheridan), but it's not. They'd better be there by tomorrow.