Oil prices continued to plunge Tuesday, falling more than $3 in early trading to $118 a barrel as a tropical storm did minimal damage in the Gulf of Mexico and speculation that slower economic growth will curb demand, Bloomberg reported.
Crude oil futures fell to as low as $118 a barrel on the New York Mercantile Exchange following Monday’s $3.69 drop to a $121.41 a barrel, the lowest closing price in three months, Bloomberg said.
Oil has fallen more than $25 since setting a closing-price record $145.18 on July 14.
Tropical Storm Edouard made landfall on the Texas coast near Galveston south of Houston early Tuesday, but with winds of 65 miles per hour was short of the 74-mph hurricane level and was expected to weaken as it moved inland, the Associated Press reported.
The storm forced some shutdowns of oil facilities but did not cause major damage to refineries and rigs along the Texas-Louisiana border region hard hit by Hurricanes Katrina and Rita in 2005, AP said.
Meanwhile, OPEC is unlikely to cut production quotas at its next meeting, Bloomberg reported, citing cartel sources.
