Oil prices drop below $118 after inventory report

Oil prices drop below $118 after inventory report: Financial News – AP

NEW YORK (AP) — Oil prices slipped beneath $118 a barrel Wednesday — $30 below their record high — after a jump in U.S. crude and other fuel supplies fed beliefs that high energy prices are eating into demand.

Light, sweet crude for September delivery fell $1.10 to $118.07 a barrel in early afternoon trading on the New York Mercantile Exchange. Prices earlier fell as low as $117.11, the lowest since May 2 and slightly more than $30 below their trading high of $147.27 reached July 11.

At the pump, falling crude kept weighing on prices. U.S. filling stations hungry for business ratcheted down the price for a gallon of regular on average by another penny overnight to $3.862, according to auto club AAA, Oil Price Information Service and Wright Express. Prices have now fallen more than 6 percent from all-time highs above $4 a gallon reached July 17.

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