This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oil Drops On Bleak Outlook For Europe Economy

By SANDY SHORE

The price of oil fell Thursday after the European Central Bank predicted a bleak year ahead for the region's economy but stopped short of offering new measures to boost growth

Benchmark oil fell $1.62, or 1.8 percent, to finish at $86.26 per barrel in New York. Brent crude, which is used to price international varieties of oil, dropped $1.78, or 1.6 percent, to end at $107.03 per barrel in London.

The ECB left its key interest rate unchanged at a record low, and the bank cut its 2013 economic forecast for the region to negative from positive.

The 17 countries that use the euro currency are in a recession after a massive debt crisis followed by government spending cuts and tax hikes that have hurt growth.

Price Futures Group analyst Phil Flynn said Draghi's comments "kind of shocked the market." Stimulus measures that have been put in place by central banks in several countries were intended to help economic growth. Traders embraced them with expectations that demand for energy products would strengthen.

Draghi's statement overshadowed a positive report on U.S. unemployment claims. The Labor Department said applications for benefits fell slightly last week to a level consistent with modest hiring.

At the pump, the average retail price of gasoline was flat at a national average of $3.38 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That's nearly 11 cents more than a year ago.

In other energy futures trading on the New York Mercantile Exchange:

â¿¿ Heating oil fell 4.75 cents to finish at $2.9432 per gallon.

â¿¿ Wholesale gasoline fell 4.09 cents to finish at $2.5969 per gallon.

â¿¿ Natural gas fell 3.4 cents to finish at $3.666 per 1,000 cubic feet.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,873.13 -38.98 -0.23%
S&P 500 1,966.58 -3.37 -0.17%
NASDAQ 4,455.6720 +12.9740 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs