NEW YORK–A report that showed the US economy unexpectedly contracted in the fourth quarter cut short oil's first foray above $98 a barrel in four months yesterday.Benchmark oil for March delivery was little changed in afternoon trading, down eight cents to $97.50 per barrel on the New York Mercantile Exchange.
It rose as high as $98.24 in the morning but fell back after the government said the US economy shrank from October through December, the first quarterly drop since 2009.The government also said that crude oil supplies rose by 5.9 million barrels last week, more than twice what analysts expected, as imports increased.
The rise in inventories could also indicate less demand.Still, oil maintained some of the momentum that has pushed up the price by about $6 a barrel this year.
AP
