Oil prices fall after Gadhafi's death

By The Associated Press
Published: October 20, 2011

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NEW YORK --

The price of oil is falling 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.

Oil fell 33 cents to $85.28 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 provided the world's markets will 1.5 million barrels of oil a day. When Libya stopped exporting that oil, it helped push the price of oil to $114 a barrel earlier this year.

Oil has also become cheaper this year because of lower demand in a slowing global economy.