Crude extends plunge, ends below $94

The price of oil extended a weeklong plunge Friday, falling 1.6 percent to below $94 a barrel, as a rebounding U.S. economy drove the dollar higher and signs continue to emerge that there is an ample supply of crude worldwide.
By The Associated Press Modified: January 3, 2014 at 8:52 pm •  Published: January 4, 2014
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In brief

Crude plunge continues

The price of oil extended a weeklong plunge Friday, falling 1.6 percent to below $94 a barrel, as a rebounding U.S. economy drove the dollar higher and signs continue to emerge that there is an ample supply of crude worldwide.

Benchmark U.S. oil for February delivery fell $1.48 to close at $93.96 a barrel in New York. Brent crude fell 89 cents to close at $106.89 a barrel in London.

U.S. crude fell by $2.98 on Thursday, the biggest one-day drop since November of 2012. Prices have fallen 6.4 percent over the past week, after oil closed above $100 last Friday for first time since October.

A financial recovery in the U.S. would typically drive oil prices higher, given the appetite of the world's largest economy. But that recovery has been driven in part by a massive Federal Reservebond-buying program that has encouraged investors to buy commodities, boosting prices.

The Fed recently began winding that program down, however. That is helping to boost the value of the dollar and leading investors away from oil.

Associated Press