Oil falls to $96 a day after sharp drop

The Associated Press
Associated Press
Sign worker Ray Messore, of Glocester, R.I., works on a sign next to one where gasoline prices are posted at a gas station in Pawtucket, R.I., Monday, Sept. 17, 2012. (AP Photo/Steven Senne)

NEW YORK (AP) — The price of oil fell further Tuesday, after taking a sharp and largely unexplained plunge the previous day.

Benchmark crude lost 51 cents to $96.11 around 12:30 p.m. in New York. It fell $2.38, or 2.4 percent, to finish at $96.62 on the New York Mercantile Exchange on Monday, marking its biggest percentage decrease since July 23.

Oil at one point Monday dropped more than 3 percent during a rapid sell-off that mystified traders. Some analysts suggested the price of oil had gotten too high given continued weakness in the global economy.

The decline wiped out gains made last week when the Federal Reserve unveiled new steps to boost the U.S. economy.

Brent crude is down $1.15 to $112.64 a barrel in London.