Oil falls on expected supply increase, weak demand

NEW YORK (AP) -- Oil is falling after more signs that supplies of petroleum products are rising and demand is falling in the US.

An industry survey by the American Petroleum Institute says that US crude supplies unexpectedly grew by 3.2 million barrels last week. The government's Energy Information Administration will release its official figures on Wednesday as well.

Benchmark crude for June delivery lost $1.39 at $109.66 per barrel on the New York Mercantile Exchange. In London, Brent is down 85 cents at $121.60.

MasterCard SpendingPulse in its weekly survey said Americans are buying less gasoline. SpendingPulse said the four-week average of retail gas demand dropped for the sixth consecutive time.

Pump prices are still rising. The national average is $3.982 per gallon, up more than a dime from a week ago.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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Hello? Wall Street Speculators?? Where are you now? When there was a little trouble in Egypt, oil prices shot up. Then came Libya, and more of the same. Now that we have killed Bin Laden, why hasn't the bottom fallen out? Speculators, you have ripped us off for more than enough. Gas should be $2.00 a gallon now.

You have just as much right to purchase oil or unleaded gasoline contracts as any other person on the planet. Don't blame Wall Street because you choose to sit around griping about oil prices instead of investing in oil.

BTW, what does killing the hairball have to do with oil prices? We still have unrest across the Middle East, we still have Iraq deeply divided and teetering on the edge of civil war, an unstable government and rising militant insurgency at the Southern doorstep of Saudi Arabia, and we still have the loonies in Iran sitting at the Strais of Hormuz and capable of closing it whenever the mood strikes them.

Plus, the price of gasoline is influenced by other factors above the price of oil.