Associated Press Oil tumbles below $34 a barrel on economic fears

COLUMBUS, Ohio (AP) -- Oil prices slid to a new low for the year Thursday because of growing doubts that the $789 billion stimulus package will reinvigorate the U.S. economy and demand for energy.

Crude supplies in the U.S. reached an 82-week high last week, according to the Department of Energy, showing just how far demand has fallen.

Light, sweet crude for March delivery tumbled $1.96, more than 5 percent, to settle at $33.98 a barrel on the New York Mercantile Exchange.

Since Monday, the price for a barrel of oil has fallen nearly 20 percent. Crude last settled below $34 a barrel two months ago.

Dispiriting economic news continues to depress energy prices because traders see consumers and businesses cutting back spending even further in coming months. more...