June 3, 2008 Oil bubble shows sign of bursting

(NECN) - Maybe, just maybe, the oil speculators are cashing out.

Oil prices fell sharply in New York on Tuesday, a fall sparked by declines in U.S. oil and gas consumption, and a rebound in the U.S. dollar. Light, sweet crude for July delivery fell $3.45 to settle at $124.31 a barrel on the New York Mercantile Exchange, and dropped below $124 in after-hours electronic trading.

Oil prices have fallen by 8 percent from their peak of $135 per barrel on May 22. Gasoline prices at the pumps, which often lag behind oil prices, have shown no sign of letting up yet. The national price of gasoline rose to an average of $3.98 per gallon today.