Crude oil drops under $89

Prices reached $90.76 in overnight trading but lost ground as the dollar index rose 0.5 percent. U.S. equity markets started strong but closed flat as enthusiasm over a tax plan compromise announced by the White House faded by the close of trading.

The price of January light, sweet crude oil on the New York Mercantile Exchange dropped $2.46 from the peak to $88.30. Heating oil prices lost 0.57 cents to $2.47 per gallon. Reformulated gasoline prices dropped 2.93 cents to $2.3124 per gallon.

Henry Hub natural gas prices shed 1.03 cents to $4.485 per million British thermal units.

At the pump Tuesday, the national average price of unleaded gasoline rose to $2.958 per gallon from Monday's $2.951, AAA said.

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