Oil prices ease as storm worries fade

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Oil prices slipped Monday, falling from a 7-week high settlement price during the previous session, as concerns about the tropical storm in the Gulf of Mexico began to ease.

What prices are doing: Crude oil futures for August delivery fell 61 cents, or 0.8%, to $78.25 a barrel.

The national average price for a gallon of regular unleaded gas increased to $2.756, up 0.1 cent from the previous day's $2.755, according to motorist group AAA.

What's moving the market: Fears that tropical storm Alex could threaten oil production and BP's clean up in the Gulf of Mexico faded after the National Hurricane Center's forecast showed that the storm will leave the key areas unaffected.

Investors also digested proposals made at the G-20 summit over the weekend. Global leaders agreed to cut their budget deficits in half by 2013 and make banking systems safer.

The drilling moratorium in the Gulf, which has been in effect since April, does not impact any current oil production.

What analysts are saying: "There's a good chance we'll come off the huge increases from Friday," said energy economist Jim Williams, president of WTRG Economics. "Even if the storm develops into a hurricane, it looks like it won't really be a big one and won't really affect oil production much."

Williams described the outcome of the G-20 meeting as a "yawn."

"Everyone had the same message going into the meeting as they did coming out of it: they'll work to tighten budgets, cure the deficit problem, but it will be a while. So there's no compelling reason for prices to move upward." To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.45%4.43%
15 yr fixed3.89%3.89%
5/1 ARM4.17%4.22%
30 yr refi4.44%4.43%
15 yr refi3.87%3.87%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 24,580.89 119.19 0.49%
Nasdaq 7,692.82 -20.14 -0.26%
S&P 500 2,754.88 5.12 0.19%
Treasuries 2.90 0.00 0.00%
Data as of 8:12am ET
Company Price Change % Change
Morgan Stanley 48.89 0.00 0.00%
DowDuPont Inc 67.00 0.00 0.00%
PG&E Corp 42.92 0.00 0.00%
Kinder Morgan Inc 17.39 0.00 0.00%
Williams Companies I... 27.64 0.00 0.00%
Data as of Jun 22

Sections

One of the world's leading smartphone makers is aiming for the biggest stock market listing in nearly two years. More

If Trump puts tariffs on European cars, it would hurt automakers who build a lot of cars in the United States. More

The US is set to announce measures this week taking aim at Chinese investment in key American technologies amid an emerging trade war between the two countries. More