Oil prices fell to the $111 level Friday, reaching their lowest point in more than three months after the dollar muscled higher and OPEC predicted world demand for energy will keep falling.I'm still not driving any more than I absolutely have to. I urge the rest of the world to do the same, not that the rest of the world listens to me.
Oil prices dropped lower on speculation that demand will fall further in the coming months. Light, sweet crude for September delivery fell $3.26 to $111.75 a barrel on the New York Mercantile Exchange, after earlier falling to $111.34, its lowest since May 2 and more than $35 -- or 24 percent -- below oil's July 11 trading record above $147.
As high energy costs force countries around the globe to cut back on consumption, crude prices have plummeted and are now within striking distance of $100 a barrel, a level first reached Feb. 19.
At the pump, retail gas prices also continued to fall, with a gallon of regular shedding about half a penny overnight to a new national average of $3.771, according to auto club AAA, the Oil Price Information Service and Wright Express. Gas peaked at $4.114 on July 17.
Crude fell after the dollar gained strength against the euro on U.S. data showing that industrial output rose more than expected in July. The 15-nation euro has lost some of its luster compared to its American rival amid growing evidence that European economies are slowing. The euro bought $1.4672 in trading Friday, down from $1.4811 late Thursday.