Oil fell Monday on the realization that a short-term fix in Spain won’t offer a long-term solution to Europe’s debt crisis.
A multibillion dollar bailout loan for Spain’s banks generated initial enthusiasm in the global stock, bond, and energy markets. But by the close in New York, the good feeling had given way to skepticism.
Benchmark oil fell $1.40 to $82.70 per barrel in New York. Brent crude, which is used to price international varieties of oil, dropped 81 cents to $98.66 per barrel in London.
The average price for gas in Massachusetts is $3.489 a gallon in the latest weekly survey from AAA, down 8 cents from the previous week’s average, AAA Southern New England said Monday.
This was the eighth consecutive week of Bay State price declines.
Prices locally are now 41 cents less than the peak gas prices seen in mid April, AAA said.
The national average for gas is $3.54 a gallon. A year ago at this time, the Massachusetts average price was $3.71.
AAA’s weekly surveys focus on self-serve, regular unleaded gas.