Oil drops below $89 a barrel

AP News
Posted: Dec 21, 2012 3:57 PM

Oil prices fell as much as $2 a barrel Friday as doubts grew about whether political leaders in Washington could reach a deal on the budget before a package of tax hikes and spending cuts automatically kicks in with the new year.

On the New York Mercantile Exchange:

Benchmark crude fell $1.47 to finish at $88.66 per barrel.

Gasoline fell 1.96 cents to end at $2.7347 a gallon.

Heating oil fell 3.51 cents to finish at $3.0224 a gallon.

Natural gas fell 1.1 cents to end at $3.4510 per 1,000 cubic feet.

On the ICE Futures exchange in London:

Brent crude fell $1.23 to finish the day at $108.97 per barrel.