Crude oil prices continue downward

December 08, 2009|Associated Press

NEW YORK - Crude prices, which have trended lower for over than a month, grew even cheaper yesterday.

Benchmark crude for January delivery fell 2 percent, or $1.54, to settle at $73.93 on the New York Mercantile Exchange, the lowest level in about two months.

Oil is bought and sold largely in dollars, and this year the dollar has taken a beating compared with other currencies. That has allowed investors holding euros and other stronger currencies to buy a lot more oil for less.

Consumers who want an early indication of where the prices of gasoline, diesel, and other fuels are going might want to watch the movement of the dollar. The rising dollar on currency exchanges could mean more bang for the buck at the gas station.

At about $2.63 a gallon, gasoline now costs about 90 cents more than it did last year at this time, when prices were falling.

In other Nymex trading in January contracts, heating oil fell 1.71 cents to $2.0097.