Oil futures retreated Friday, as light, sweet crude for January delivery fell $1.95 to settle at $88.28 a barrel on the New York Mercantile Exchange after rising $2.74 on Thursday.

Retail gasoline prices, meanwhile, declined again, dropping 1.1 cents overnight to $3.023 a gallon, according to AAA and the Oil Price Information Service.

Gasoline prices have fallen nearly 9 cents, or 3 percent, since mid-November and are expected to retreat below $3 a gallon as long as oil prices generally keep falling.

The average gallon of gasoline in Lawrence cost $2.815 on Friday, up from $2.789 on Thursday, according to AAA. The average price was $2.194 a year ago.