NEW YORK CITY — Saudi Arabia’s oil minister announced an increase in production levels this week, lowering prices by nearly $3 and spurring hopes that the nation will see a strong season of holiday shopping. Experts had feared that expensive energy costs would drag down consumer spending.
Oil prices dipped $2.80, to $94.90 a barrel, in New York trading. High oil prices have fueled fears of inflation and a clamp-down on spending as future contracts march closer to the symbolic $100 mark. But some analysts warned that a one-day drop should not signal long-term relief.
“I wouldn’t be surprised if you saw $3 down today and $3 up tomorrow,” said Ben Dell, an analyst at Sanford C. Bernstein.
SOURCE: New York Times