Oil falls below $87 as slide continues

A U.S. Energy Department report suggesting drivers have been staying home to avoid driving pushed oil prices lower Wednesday.
By JONATHAN FAHEY, AP Energy Writer Modified: April 17, 2013 at 9:44 pm •  Published: April 18, 2013
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In brief

Oil price slips even lower

Oil dove again Wednesday, the latest in a series of declines that has pushed the price down by $10 a barrel over two weeks.

This time, it was an Energy Department report that suggested more drivers are staying home, giving them no reason to fill up their tanks.

That actually benefits those hitting the gas station. The average price of gas has dropped 11 cents since April 1 and could fall further.

Oil dropped $2.04, or 2.3 percent, to close at $86.68 in New York. Brent crude dropped $2.22, or 2.2 percent, to $97.69, the lowest level since July.

Forecasts for global oil demand have fallen at a time of ample supplies. Economic reports from the U.S., China and Europe have been disappointing. Wednesday was the fourth drop of at least 2 percent in April.

U.S. demand for gasoline during the four weeks ended April 12 was 3.3 percent less than a year earlier, according to the Energy Department. That's the lowest demand for the second week in April since 1997, according to Gasbuddy.com.

Associated Press