Oil Falls Below $108 as Gustav Damage Appears Minimal

Crude oil fell more than $2 to below $108 a barrel in early trading Wednesday, as major oil firms said Hurricane Gustav did not cause any significant damage to Gulf of Mexico oil facilities over the weekend, Bloomberg reported.

Oil fell $5.75 Tuesday on the Nymex to close at $109.71 a barrel, the lowest closing price in five months, Bloomberg said.

The U.S. Coast Guard reported no major damage or oil spills on the Gulf following Gustav, which moved through the Gulf over the weekend, making landfall southwest of New Orleans on Monday.

Thirteen refineries on the Gulf Coast and 10 others ran at reduced output levels as the Hurricane approached, Bloomberg said.

Diesel and gasoline pump prices fell for a seventh and eighth straight week, the Energy Department said Tuesday following its weekly survey of filling stations.