UPDATE

HURRICANE GUSTAV UPDATE AT 7.45 PM SEPT 1, 2008

Crude oil fell, reversing earlier gains, after Hurricane Gustav weakened,

easing concern of widespread damage to drilling rigs and refineries.

Gustav has been downgraded to a Category 2 storm, the second-weakest

of the five levels of hurricane strength. The latest forecast shows that while

Gustav is perfectly aimed at the heart of U.S. oil and gas production it's not

quite as strong as initially thought.