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Oil price tumbles on weak economy

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A sign for $2.99 a gallon gasoline is seen as vehicles wait for a traffic light to turn green at a Hot Spot convenience store on the corner of Henry and Converse Streets on Friday, June 1, 2012 in Spartanburg, S.C. Oil prices plunged as bleak reports on U

A sign for $2.99 a gallon gasoline is seen as vehicles wait for a traffic light to turn green at a Hot Spot convenience store on the corner of Henry and Converse Streets on Friday, June 1, 2012 in Spartanburg, S.C. Oil prices plunged as bleak reports on U.S. job growth and manufacturing heightened worries about a slowing global economy. (AP Photo/Rainier Ehrhardt)

Associated Press

NEW YORK — The price of oil fell below $83 on the prospect of weak economic growth with no immediate assistance from the U.S Federal Reserve.

U.S. benchmark crude fell $2.24 to $82.58, a decline of 2.6 percent, in morning trading. The last time oil closed below $83 was in early October of last year.

Global economic growth is weakening. Europe remains mired in a debt crisis and growth in the U.S. and China has slowed. That reduces demand for oil to make fuels for shippers and travelers.

Oil prices had risen off recent lows on hopes that Federal Reserve Chairman Ben Bernanke would unveil a plan to stimulate the U.S. economy. But he told Congress Thursday that no plan was imminent.

U.S. retail gasoline prices fell slightly to $3.555 per gallon.