Oil drops below $95 per barrel

July 11, 2011 - 11:14 AM

NEW YORK (AP) — The latest readings on Chinese inflation and renewed worries about European debt are pushing oil lower.

Benchmark West Texas Intermediate crude fell $1.88 to $94.32 per barrel Monday on the New York Mercantile Exchange.

Oil declined following a weekend announcement that inflation in China hit a three-year high in June.

It fell further Prices as European officials disagreed over a second bailout package for Greece. Uncertainty about Greece's debt problems raised concerns that the economic crisis could spread to Italy and Spain.

The dollar shot up in morning trading, and that weighed on oil futures. Oil is traded in dollars and tends to fall as the dollar strengthens and makes crude more expensive for investors holding foreign money.

Meanwhile, retail gasoline prices in the U.S. increased to $3.63 per gallon.