US oil prices slipped below $90 a barrel this evening as the latest US government data showed Americans keeping a tighter grip on their wallets.
The US Commerce Department said today that consumers spent less on cars, clothing and furniture last month. Consumer spending drives the US economy, and a decline in retail spending suggests Americans will continue to consume less fuel.
Benchmark West Texas Intermediate crude gave up $1.42 to $88.79 a barrel in New York while Brent crude lost 75 cents to $109.02 in London.
The US government said today that oil supplies fell more than twice as much as expected last week while petrol supplies rose. US supplies were impacted earlier this month as Tropical Storm Lee temporarily shut down oil production in the Gulf of Mexico.
The Energy Information Administration said that wholesale petrol demand dropped 2.7% as petrol prices rose.
