Oil prices drop as demand concerns resurface

By Associated Press
Posted Oct. 7, 2010 at 10:46 a.m.

Oil prices retreated on Thursday after rising past $84 a barrel earlier in the session. Benchmark oil for November delivery lost 35 cents at $82.88 a barrel on the New York Mercantile Exchange.

The contract added 41 cents to settle at $83.23 on Wednesday.

At the gas pump, prices rose again, to a national average of $2.768 for a gallon of regular. That’s up 1.7 cents from Wednesday and more than 30 cents higher than a year ago. Higher oil prices are driving up retail gas prices.

Crude prices have stayed above $80 over the last week as the dollar weakened against the euro. Energy analysts, such as The Schork Report, have said the price of oil recently has been closely tied to the dollar-euro connection. Dollar-based commodities, such as oil, become cheaper for investors with other currencies when the dollar drops. The euro rose against the dollar again on Thursday.

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