Oil prices dipped below $60 a barrel tonight for the first time in about a year and a half, as a growing number of economic reports point to a long and painful recession. Light, sweet crude for December delivery fell to $59.97 in New York trading, the lowest level since March 2007, before ticking back up to $60.27.
When the economy slows, the demand for energy fades. One side effect: the price of gasoline has tumbled from summer highs, when a gallon cost more than $4. Experts say gasoline could cost half that by year's end. Oil prices have now fallen nearly 60 percent since peaking at $147.27 a barrel in mid-July. They surged above $70 Tuesday, but a crude sell-off began the following day when prices dipped 7.4 percent.