The price of oil fell after the death of Libyan dictator Moammar Gadhafi, although it should take months for Libya’s oil industry to recover and for the full impact to be felt on world markets, according to recent reports from the Associated Press.
Oil fell $1.08 to $85.03 per barrel in New York on Thursday. At the pump, the price of gasoline was flat at about $3.47 a gallon.
Before the Libyan civil war, Libya had exported 1.5 million barrels of oil a day, or 2 percent of global demand. When Libya stopped exporting most of that oil eight months ago, it helped push the price of oil to $114 a barrel.
Oil has also become cheaper since then because of falling demand in a slowing global economy.