Oil drops to lowest price since 2010

October 3, 2011 - 9:50 AM

NEW YORK (AP) — Oil is starting the last quarter of 2011 at the lowest level in more than a year as Greece's debt crisis and the possibility of another recession spooks investors.

Benchmark crude lost $1.47 to $77.73 per barrel in New York. Oil hasn't been that low since September 2010. In London, Brent crude dropped $1.38 to $101.38 a barrel.

Prices tumbled after Greece said it will miss spending targets despite severe cost-cutting. Greece has been relying on international aid to pay its bills, but further loan installments appear in jeopardy because of its inability to manage its budget.

Without more help, Greece will start to run out of money in two weeks.

Meanwhile at the pump, gas prices fell less than a penny to a national average of $3.417 per gallon.