NEW YORK - Oil held above $85 per barrel yesterday on news that the economy didn’t grow as fast as previously expected. Slower growth lowers energy demand.
The government said the US economy grew at just 1 percent from April to June, down from previous estimates of 1.3 percent.
Benchmark West Texas Intermediate crude fell 7 cents to $85.37 per barrel in New York. Brent crude rose 74 cents to $111.36 in London.
Hurricane Irene is expected to shut down refineries, power plants, and gasoline import terminals as it winds up the Eastern Seaboard. The storm could stifle fuel supplies in coming days, but analysts said prices shouldn’t rise by much. Besides, analyst Michael Lynch said, gasoline demand should plunge along the East Coast as people stay home and businesses close.
Meanwhile, retail gasoline prices rose a penny to $3.592 per gallon, according to auto club AAA, Wright Express, and Oil Price Information Service.
