September delivery for light, sweet crude dropped by $2.54 today, to close at its lowest level since June 10, settling at $122.19 on the Nymex. It dropped as low as $120.75 during the trading hours; something it hasn't done since May.
The higher cost of fuel has caused consumers to drive less, which has lowered the demand for oil; one of the major factors in its decline.
A stronger U.S. dollar has also been a factor, as investors abandoned commodities today to put their capital in equities, which drove up the DJIA by 266 points.
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