Oil drops on evidence of slower growth in China

The price of oil is plunging on more evidence of slower growth in China.

Benchmark oil fell $2.94, or 3.2 percent, Wednesday to $88.95 per barrel in New York.

China says its services sector slowed in September but still is growing. China is a huge importer of commodities like oil so slower growth there could cut into demand for oil.

That's overshadowing news that U.S. service companies grew in September.

Meanwhile, the government says crude inventories fell slightly last week but remain 8.4 percent above year-ago levels. Gasoline supplies rose.

At the pump, AAA says the national average price for gasoline is essentially flat at $3.78 per gallon. That's about a nickel less than a month ago but nearly 37 cents more than a year ago.