World Bank Warning Pulls Current Oil Prices to Two-Month Low

The World Bank’s strong caution that Asian growth may slow down further pulled current oil prices to its lowest settlement in two months.

Specifically, the World Bank hinted at the probability of a more distinct slowdown in China. Moreover, it also reduced its growth projection for Asia as a whole. Strong growth in developing markets, such as India and China, helped increase the consumption of oil coming out of the world recession.

On the NYMEX, the current oil price of the U.S. Benchmark reflects a 55-cent reduction, at $89.33. The contract has not ended lower since the 2nd of August.

Meanwhile, gasoline prices today stay persistently high. The nationwide gasoline price average gained 3 cents during the weekend, to $3.818 per gallon.

However, those living in California are spending about $4.668 per gallon for gasoline, putting the state at the top spot for having the most expensive rates at the pump nationwide. California reached its high gas prices after a 50-cent gain in the previous week. Several motorists in the state are even spending as much as $5 per gallon for gas.

In response to this, Governor Jerry Brown has mandated environmental regulators to permit the selling of cheaper winter blend gasoline three weeks earlier than scheduled. Moreover, Senator Dianne Feinstein has requested a federal investigation since she does not believe that the high levels of the current gasoline prices are linked to demand and supply.

Experts are anticipating California’s high gasoline prices today to move up to about $4.85 per gallon before falling.

In London, the price of Brent shed 20 cents to $111.82 a barrel.

In other energy news, the price of natural gas increased less than a cent to $3.40 per thousand cubic feet. The cost of heating oil dropped a cent to settle at $3.14 a gallon. And the rate of wholesale gas sheds 6 cents to close at $2.89 a gallon.

By: Chris Termeer