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Oil falls 5 percent to 5-month low as the market ‘looks for a bottom’

(NationalSentinelEconomy: The Dow Jones Industrial Average didn’t much care for the fact that oil prices slipped 5 percent on Thursday to a five-month low, but no doubt consumers will.

As reported by CNBC, that likely won’t be the last drop in oil prices, at least in the near-term:

Oil prices struck a new 2017 low on Thursday as mixed U.S. stockpile data compounded bearishness that has permeated the energy complex in recent weeks.

U.S. West Texas Intermediate crude fell below $46 and international benchmark Brent breached $49, both sinking to the lowest level since Nov. 30, the day the Organization of the Petroleum Exporting Countries agreed to cut output.

Analysts said WTI could eventually decline to $42 now that it broke this key level.

The Dow slipped 60 points on the news that crude prices had fallen, but again, consumers will be happy as demand for refined products (gasoline, kerosene, etc.) continues to decline. Also, global crude inventories continue to grow, so as supply rises and demand drops, so do prices.

The summer driving season is upon us, however, so crude inventories could soon dip, at which point prices will rise again.

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