Oil prices fall near $90, erasing last week's gains

10 16, 2012 by The Times-Picayune

The price of oil is falling Monday and giving back the gains from last week.

In morning trading, benchmark crude oil is down 1.9 percent, or $1.71, at $90.15. Oil rose 2.1 percent last week.

Traders are brushing off some positive U.S. economic news. The Commerce Department says retail sales rose 1.1 percent last month. That follows a 1.2 percent increase in August.

The focus instead is on weaker oil demand. On Friday, the International Energy Agency issued a new report predicting slower growth in demand for oil over the next five years. The agency also forecast that supplies will increase as the global economy struggles to grow.

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