NEW YORK, United States — Oil prices dropped for a second straight day on yesterday as traders waited to see whether the Federal Reserve will keep interest rates at record lows that have helped support crude prices.

Oil also followed the stock market lower amid concerns that the European government debt crisis, centered on Greece, is spreading after Standard & Poor’s downgraded the debt of Greece and Portugal. The worry is that the problems can damage the economic recovery and hurt oil demand.

Benchmark crude for May delivery fell US$1.76 to settle at US$82.44 a barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average was down about 140 points in afternoon trading.

When the Fed wraps up its two-day meeting Wednesday, it is all but certain to leave the key bank lending rate between zero and 0.25 per cent, where it’s been since December 2008.

The question is whether the Fed will talk about taking steps to reduce the unprecedented amount of money it pumped out to fight the Great Recession. The economy is getting better, but unemployment remains near double digits and is expected to stay high all this year.