Oil Price Falls as Spending Cuts Loom
From CBS News
The price of oil fell Friday to its lowest level of the year on worrisome economic developments in the world’s two largest oil-consuming nations.
The prospect of U.S. government spending cuts raised concerns about oil demand in the world’s leading economy while China’s manufacturing grew at its weakest rate in five months in February.
By late morning in New York, benchmark crude for April delivery was down $1.19 to $90.86 a barrel. Earlier, it hit a low for 2013 of $90.44.
While there have been signs of an improving U.S. economy in recent weeks, attention Friday was focused on the increasing likelihood that about $85 billion in spending cuts could start taking effect later in the day as part of an earlier budget agreement between the White House and Congress.
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