Business

Oil drops below $88 per barrel

Oil fell below $88 per barrel on Monday after a slow day of trading.

Analysts gave two reasons for the decline. One was that the truce between Israel and Hamas in the Gaza Strip appeared to be holding. The second was concern among traders that negotiations over the next installment on Greece’s bailout could fail. Talks continued well into the evening in Brussels.

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Oil prices tend to fall when there are worries that slow economic growth will hurt ­demand.

Oil for January delivery closed lower by 54 cents at $87.74 on the New York Mercantile Exchange.

Nationally, AAA said gasoline prices at the pump fell a fraction of a penny to $3.423 per gallon. In Massachusetts, the average was $3.569 a gallon, down 2 cents from the previous week.

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