As anyone who has filled up their gas tank in the last month knows, oil prices have been on a tear of late. But today oil is experiencing a rare pullback.
As of 1:30 eastern time, oil prices had fallen 1.8% on Tuesday to $106 a barrel. Weakening iron-ore demand in China, a stronger dollar, and cooperation out of Saudi Arabia are being cited as the catalysts behind the declining oil prices.
Saudi Arabia, the world’s largest oil exporter, put out a statement yesterday saying that it is willing to work with oil producers to make oil prices more fair. Meanwhile, according to The Wall Street Journal , a big-oil executive told reporters today that he sees demand for iron ore in China weakening, which is pulling down commodities as a whole, including oil.
While oil investors may not like today’s pullback in oil prices, the average American probably will. Oil has cost more than $100 a barrel for more than a month now, pulling gas prices up along with it. Gas prices in the U.S. have reached their highest point since last May at $3.82 a gallon.
Gas was right around $3.20 a gallon at the beginning of the year.