THE price of oil fell 1 percent yesterday as the financial crisis in Cyprus overhung the market.

Benchmark oil for May delivery dropped US$1.05 to finish at US$92.45 a barrel in New York.

European jitters have escalated since the government in Cyprus rejected a bailout plan Tuesday that would have taxed bank deposits. Without a bailout deal, some of Cyprus' banks could collapse, devastating the country's economy and potentially forcing it to exit the euro currency.

Brent crude, used to price many kinds of oil imported by US refineries, fell US$1.25 to US$107.47 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

- Wholesale gasoline fell 5 cents to US$3.07 a gallon.

- Heating oil was flat at cents to US$2.90 a gallon.

- Natural gas fell 3 cents to US$3.94 per 1,000 cubic feet.