Posted: May 17, 2011 9:43 AM by Nichole Larkey & AP
Updated: May 17, 2011 11:26 AM
Oil prices are falling after factory production and new home
construction declined in the U.S. last month.
Benchmark oil for June delivery fell 67 cents to $96.70 per
barrel Tuesday morning on the New York Mercantile Exchange.
The Federal Reserve says factories produced fewer goods in April
for the first time in 10 months. Part of the drop is related to a
shortage in parts from Japan that affected auto manufacturing.
In addition, the Commerce Department says builders broke ground
on 10.6 percent fewer new homes in April compared with March.
Analysts say the disappointing news is raising questions about
demand for gasoline and other energy products.
Meanwhile, gas is $3.944 a gallon nationally and has dropped
about 4 cents since Friday.