Oil drops below $40 a barrel

The price of American crude oil dipped below the $40 a barrel mark on Friday for the first time since 2009. 

West Texas Intermediate (WTI) crude oil prices went as low as $39.86 a barrel Friday, falling below the $40 mark for the first time since the recession. The price eventually rebounded to $40.45 at the close of trading. 

{mosads}The benchmark price for international oil fell 2.5 percent to $45.46 on Friday.

Analysts blamed the dip on a confluence of factors, The Wall Street Journal reports. That includes a continued surge of oil from American producers, who increased the number of drilling rigs for the fifth straight week. 

A potential economic decline in China, the world’s second largest oil consumer, has led to concerns about a drop in demand despite high oil supplies worldwide. 

But declining crude oil prices mean lower gasoline prices for drivers. Retail gas prices averaged $2.63 a gallon in the U.S. on Friday, the lowest price for this time of year since 2009, according to the Wall Street Journal. 

Federal analysts lowered their long-term prediction for American oil prices this week, expecting them to average around $54 per barrel next year. 

The Energy Information Administration said its new projection is based on the potential for slow economic growth in crude oil markets, growing supplies and increasing oil inventory around the world.