Oil falls below $88
Oil fell below $88 per barrel on Monday after a slow day of trading.
Analysts gave two reasons for the decline. One was that the truce between Israel and Hamas in the Gaza Strip appeared to be holding. The second was concern among traders that negotiations over the next installment on Greece's bailout could fail. Talks continued well into the evening in Brussels.
Oil prices tend to fall when there are worries that slow economic growth will hurt demand. And analysts said the risks associated with the tense situation in the Middle East will likely limit gains, even if a deal is reached for Greece's bailout.
Oil for January delivery closed lower by 54 cents at $87.74 on the New York Mercantile Exchange. Other petroleum products were also down.
AAA said gasoline prices at the pump fell a fraction of a penny to $3.423 per gallon.
Brent crude slipped 57 cents to $110.81 a barrel.
Wholesale gasoline fell 1.76 cents to $2.7260 a gallon and natural gas dropped 17.1 cents to $3.73 per 1,000 cubic feet.