As oil sank to its lowest point in weeks, many investors are still questioning whether crude oil has cooled enough to reflect the serious deterioration in demand. China has stopped its stockpiling of oil as the Olympics near and the price crunch has reduced the global demand somewhat.
Unleaded gasoline prices eased to nearly $4 a gallon, and AAA said a gallon of gas could cost as much as 25 cents less by Labor Day.
Light, sweet crude for September delivery fell $2.23 to settle at $123.26 a barrel in on the New York Mercantile Exchange. Earlier the contract dropped as far as $122.50, its lowest point since June 5.
The U.S. continues to sit on hundreds of billions of untapped oil reserves as OPEC nations continue to demand that America start tapping some of those reserves before demanding increased output from OPEC.
Unleaded gasoline prices eased to nearly $4 a gallon, and AAA said a gallon of gas could cost as much as 25 cents less by Labor Day.
Light, sweet crude for September delivery fell $2.23 to settle at $123.26 a barrel in on the New York Mercantile Exchange. Earlier the contract dropped as far as $122.50, its lowest point since June 5.
The U.S. continues to sit on hundreds of billions of untapped oil reserves as OPEC nations continue to demand that America start tapping some of those reserves before demanding increased output from OPEC.
