NEW YORK (AP) Oil dropped below $100 a barrel Monday for the first time since early July as U.S. supplies keep rising and the risks of disruption to Middle East shipments subside.
U.S. benchmark crude fell $1.59, or 1.6 percent, to close at $99.22 a barrel on the New York Mercantile Exchange. Oil has now dropped 8 percent in the month of October.
The nation's crude oil supplies rose by 4 million barrels in the week ended Oct. 11, the government said Monday, in a report that was delayed five days due to the government shutdown. Analyst expected a smaller increase of 2.25 million barrels. U.S. refinery output has slowed from a torrid pace over the summer, reducing demand for oil.
At 374.5 million barrels, the U.S. crude oil supply was 1.4 percent above year-ago levels and the highest since July, as of Oct. 11. The supply report for last week will be released Wednesday.
Other factors weighing on oil prices in the past weeks include the agreement to dismantle Syria's chemical weapons and apparent progress between Iran and world powers.
