WTI closes below $90 per barrel

The price of crude oil plummeted below $90 per barrel in New York Monday as the dollar strengthened against the euro, equities markets dropped around the world, and investors worried that the increasingly precarious global economy will cut demand for oil and oil products even further than it has already declined.

November contracts for West Texas Intermediate crude dropped $6.07 to $87.81 per barrel on the New York Mercantile Exchange to close at its lowest level in eight months while Brent crude for November delivery fell $6.35 to $83.90 per barrel on the ICE Futures Europe exchange in Europe.

Amid the declines, Saudi Aramco, the world’s largest oil company, cut prices to Asia and the US while the President of the Organization of Oil Exporting Countries predicted that prices will continue to drop into next year.

Aramco cut prices on both Arab Light crude and Arab Extra Light crude, putting Extra Light at $3.40 below the price for West Texas Intermediate.

Nymex November gasoline futures were down 16 cents to $2.07 per gallon while November heating oil was down 19 cents to $2.48 per gallon and November natural gas dropped 50 cents to $6.86 per million British thermal units.

At-the-pump prices for regular unleaded gasoline dropped 2 cents overnight to $3.50 per gallon on average nationwide.