Oil drops as U.S., Europe clash over debt crisis

NEW YORK — Oil prices are sliding as the U.S. and Europe clash over how to handle the debt crisis in Greece.

Benchmark West Texas Intermediate crude on Friday dropped $1.47, nearly 2 percent, to $87.94 per barrel in New York.

U.S. Treasury chief Timothy Geithner is with European finance ministers in Poland, suggesting that the U.S. is growing more concerned about Europe’s economic state. If the Greek government defaults, there will be a ripple effect across the continent that could potentially reach the U.S.

A weakened global economy pushes energy prices lower.

The U.S. is pushing for a more decisive solution. On Friday, European leaders pushed back a decision on more Greek payouts until October.

Meanwhile, retail gasoline prices fell in the U.S. by more than a penny to $3.611 per gallon.