Oil prices drop on falling demand

The price of oil fell to its lowest level in two months on Wednesday as evidence builds that the high cost of gasoline and other fuels is sapping demand.

Light sweet crude for November delivery fell $1.11 to settle at $62.79 per barrel on the New York Mercantile Exchange, where traders watched prices fall to their lowest level since Aug. 5. Oil is now 10 percent below the Sept. 1 record close of $69.47.

Unleaded gasoline futures fell almost 11 cents to $1.9078 per gallon, putting futures 18 percent below the Sept. 28 peak of $2.34 a gallon.

Gasoline demand during the past month was 2.6 percent below year-ago levels, The Energy Department said Wednesday.