Oil Price Drops Below $87; Pump Prices Down Again [View all]
NEW YORK (AP) -- The price of oil fell to a three-month low Tuesday as big corporations cut earnings forecasts, raising concerns about economic growth and oil demand.
Benchmark oil dropped $1.98, or 2.3 percent, to finish at $86.67 per barrel in New York. Oil has lost about 6 percent since Thursday, the biggest three-day drop in a month.
That's starting to mean more relief at the gas pump for U.S. drivers. The national average for a gallon of regular gasoline dropped 2 cents overnight to $3.65. The price has fallen 17 cents in the past 12 days.
Gas prices tend to fall at this time of year. Refiners make a cheaper blend of gasoline for the cooler months, and people drive fewer miles. This year, tepid economic growth means demand could be slower than normal. That's why gasoline futures have plunged 12 percent in less than two weeks, including a 4.3-cent drop Tuesday to $2.61 per gallon.