World oil prices fell as low as $118 a barrel in Tuesday's trading,
with investors apparently speculating that the economic slowdown in the
United States and some other nations will cut demand for energy.
At one point, the price of a barrel of oil was down more than $2 from the previous day's close.
other factors also favored falling prices, including estimates that
Tropical Storm Edouard will not seriously disrupt oil production,
increased output from the Organization of Petroleum Exporting
Countries, and some gains in the value of the dollar.
crude oil prices are cutting the prices that U.S. motorists pay for
fuel. A motorists organization (AAA) reports the retail price of
gasoline has fallen about six cents to a current nationwide average of
nearly $1.02 per liter or $3.87 a gallon.