Oil Falls; AAA Sees Declining Gas Prices in June


The price of oil fell slightly Monday and closed at a two-week low.

Benchmark U.S. oil for July delivery fell 24 cents to $102.47 a barrel on the New York Mercantile Exchange. Last week, the price of oil fell by 1.6 percent.

U.S. drivers are hoping to see a decline in gasoline prices. At $3.67, the average price of a gallon of gas is the highest it has been since early May. AAA says prices are likely to drop in June but move higher following the Fourth of July. The auto club predicts gas will average between $3.55 and $3.70 a gallon this summer.

Brent crude, a benchmark for international oils, slipped 58 cents to $108.83 a barrel on the ICE Futures exchange in London.

Oil traders are focused on U.S. jobs data set to be released later in the week that could boost expectations for higher demand. A sharp drop in U.S. gasoline supplies in last week’s report from the Energy Information Administration also pointed to rising fuel consumption.

In other energy-futures trading on Nymex:

— Wholesale gasoline fell 2 cents to $2.95 a gallon.

— Natural gas rose 7 cents to $4.61 per 1,000 cubic feet.

— Heating oil fell 1 cent to $2.88 a gallon.