Wednesday, May 23, 2012
NEW YORK (AP) — The price of oil dropped below $90 on Thursday for the first time in nearly seven months as U.S. supplies continue to grow.
Benchmark U.S. crude fell $2.25, or 2.5 percent, to $89.60 per barrel. The price hadn't been below $90 per barrel since Nov. 1.
The government said U.S. oil supplies grew last week by 900,000 barrels and hit the highest level since 1990. Analysts expected supplies to grow by 750,000 barrels.
The price of oil and other commodities tend to fall as more supplies become available.
Wednesday's decline follows a monthlong slump in benchmark oil.