Oil prices lost more ground Thursday as discouraging global economic news reinforced concerns about slowing consumer demand for energy products.
Benchmark crude for September delivery fell $2.28 to settle at $75.74 on the New York Mercantile Exchange. Prices declined for a third straight day.
Gasoline-pump prices have remained fairly stable as priorities shift from summer vacations to fall routines such as back-to-school shopping. The national average for a gallon of regular unleaded gasoline was $2.776 Thursday, about a penny higher than a week ago and 13.1 cents higher than a year ago, according to AAA, Wright Express and the Oil Price Information Service.
In Denver, prices averaged $2.657 Thursday, up two- tenths of a cent from Wednesday and 4 cents from a week ago. A year ago, the average was $2.49.
Oil prices have retreated almost 8 percent in the past week with signs of slower growth in the U.S., China and the United Kingdom.
The news didn’t improve Thursday as the Labor Department said last week’s applications for jobless benefits reached the highest level in almost six months.
Oil traders are worried that slower economic growth will mean consumers will buy less gasoline, natural gas and other energy products.
“The mood right now is a little bit of uncertainty and very slow growth, and if that’s the case, your energy products are going to take it on the chin,” Lind-Waldock senior market strategist Rich Ilczyszyn said. “I think global demand is the main driver in the energies right now.”
He said factors that could turn prices higher include weather, such as a hurricane shutting down Gulf of Mexico production, or a negative global political development.
The Energy Department said natural-gas stockpiles continued to expand last week and remain nearly 8 percent above the five-year average.
With fall about a month away, Cameron Hanover energy consultancy said it does not expect natural-gas prices to strengthen much in the near future.
Weather patterns over the next 10 weeks “will tell us a good deal about what kind of winter we should expect,” the analysts wrote.
