NEW YORK — Oil prices tumbled below $130 a barrel for the first time in more than a month Thursday, as crude’s dramatic slide entered a third day accompanied by a sharp sell-off in natural gas.
The declines accelerated amid growing concerns that the weakening economy and creeping inflation are eroding demand for fossil fuels in the U.S. and other large energy- consuming nations.
Oil is now more than 10 percent cheaper per barrel than it was Monday; natural-gas prices are down more than 20 percent just since July 4. Still, experts are not convinced that prices have turned a corner.
“There’s no bell that tells you when the market has turned,” said James Cordier, president of Tampa, Fla.- based trading firms Liberty Trading Group and .
Light, sweet crude for August delivery dropped $5.31 to settle at $129.29 a barrel on the New York Mercantile Exchange. Prices have fallen nearly $16 in the past three days.
Natural-gas futures for August delivery fell more than 8 percent Thursday, their biggest one-day drop in nearly a year, according to Nathan Golz, researcher at Wachovia Securities in St. Louis.
Prices for the key heating, cooking and power-generation fuel settled 86.1 cents lower at $10.537, their lowest point since April.
A number of market observers say there wasn’t enough support for the recent run-up in natural-gas prices and that this week’s sell-off of oil has only helped speed the declines.
“Any time oil goes up or down on Nymex, it’s going to have a carry-over effect on natural gas,” said Michael Rieke, senior managing editor for power and gas at energy research firm Platts.
The immediate cause of Thursday’s sharp natural-gas decline was a larger-than-expected increase of U.S. supplies. The Energy Department’s Energy Information Administration said in its weekly report that supplies rose by 104 billion cubic feet instead of the 86 billion to 91 billion cubic feet analysts had anticipated.
