Oil Falls Below $110, as Gustav Spares Major Gulf Rig Damage
Crude oil fell more than $5 to below $110 a barrel Tuesday, a day after Hurricane Gustav made landfall, sparing the region similar damage done by two big hurricanes three years ago, Bloomberg reported.
Oil fell to as low as $105.46 — down $10 from Friday’s closing price of $115.46 — before climbing back to $108.56 in pre-market trading on the New York Mercantile Exchange, Bloomberg said.
Oil companies shuttered about 95% of Gulf of Mexico oil production as Gustav approached, Bloomberg said, but much of the production facilities appeared to be spared serious damage, according to early assessments, Bloomberg said.
Gustav, which came ashore as a Category 2 hurricane Monday with diminishing strength, was downgraded to a tropical depression as is moved into northwestern Louisiana, according to the National Hurricane Center.
Forecasters were watching Tropical Storm Hannah, which was downgraded from a hurricane and is on track to make landfall on the East Coast by Friday, most likely near Charleston, S.C., NHC’s Web site said.
The Department of Energy comes out with its weekly survey of diesel and gasoline Tuesday afternoon due to the Labor Day holiday Monday.
