Oil Prices Continue To Slide As Japan Economy Hit

“Oil prices fell Monday as analysts sorted out how much the disaster in Japan will affect global energy demand, but U.S. gasoline prices rose to a national average of $3.56 per gallon, up about 5 cents from a week ago.

Japan, the world’s third-largest oil consumer, was hit Friday with a devastating earthquake and tsunami. Some parts of northeastern Japan are still without electricity. Three of five major oil refineries have shut down, and authorities are still trying to stabilize damaged nuclear plants.

Analysts expect the country’s energy demand will fall in the short-term. Japan will likely compensate for the shutdown of nuclear power plants by running other generators with oil, which should boost crude imports.

Benchmark West Texas Intermediate for April delivery fell $1.05 to $100.10 per barrel in morning trading on the New York Mercantile Exchange. Earlier it dropped below $99. In London Brent crude lost 19 cents at $113.65 on the ICE Futures exchange.”

The price of gas is a conundrum I’ll never work-out.