Oil Drops On Reports U.K., U.S. To Release Reserves

Oil prices are falling on reports that Britain and the United States will release oil from government-controlled emergency reserves.

News organizations reported Thursday that the two countries will try to knock down oil prices by releasing spare supply on the market. High oil prices have helped push gasoline in the U.S. to the highest price ever for this time of year, $3.82 per gallon. Experts predict the national average could reach as high as $4.25 per gallon by late next month.

The U.S. released oil from its Strategic Petroleum Reserve in August with only limited success. Prices dipped for just a few days.

Benchmark crude gave up $1.28 to $104.25 per barrel in New York while Brent crude dropped by $2.17 to $122.37 per barrel in London.