Benchmark U.S. crude, which has been tumbling since May, hit a low of $79.82 per barrel in morning trading. That's the lowest level since Oct. 6.
Prices have been falling as the world economy slows down. America isn't creating as many jobs as hoped, Europe is facing another recession, and manufacturing activity in China appears to have slowed.
The drop in oil prices has made gasoline cheaper. The national average fell to $3.472 per gallon Thursday, down 46 cents since early April, when it peaked for the year. Experts say gasoline could fall to $3.30 per gallon by July 4th.