Oil Falls to 3-Month Low
By: Administrator
Updated: October 23, 2012
NEW YORK (AP) -- The price of oil has fallen to a three-month low 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. Gasoline futures have plunged 12 percent in less than two weeks, including a 4.3-cent drop Tuesday to $2.61 per gallon.
