Oil price falls nearly $3 to dip below $80

Benchmark US crude fell $2.95, or 3.6 percent, to $78.50 per barrel in afternoon trading. Thats the lowest level since Oct. 6.The price has fallen as the world economy slows. America isnt creating as many jobs as hoped earlier this year, Europe faces another recession and manufacturing activity in China appears to have slowed.On Thursday, reports out of China and the US both pointed to a slowdown in manufacturing activity. Platts, the energy-information arm of McGraw-Hill Cos. also noted that Chinas oil demand rose less than 1 percent in May, the second-smallest increase this year.Meanwhile analysts say investors are disappointed that the Federal Reserve didnt announce more aggressive moves to stimulate the US economy after its meeting this week. The Fed will extend an existing program to lower long-term interest rates, but it doesnt plan to pump more money into the economy as it has previously.The drop in oil prices has made gasoline cheaper this summer for US motorists. The pump price fell to a national average of $3.472 per gallon (91 cents a liter) Thursday, according to AAA, Wright Express and Oil Price Information Service. Thats down 46 cents (12 cents a liter) from its peak in early April.Natural gas prices jumped more than 3 percent Thursday after the government said that the nations supplies didnt grow as much as expected last week. The Energy Information Administrations report said the US was holding more than 3 trillion cubic feet of gas in storage facilities. Thats more than 27 percent higher than average for this time of year, but a little less than what analysts expected.Natural gas futures rose 6.5 cents to $2.582 per 1,000 cubic feet in New York.