SEPT 3 WENESDAY
Crude Oil Falls on Minimal U.S. Storm Damage, Stronger Dollar .
Crude oil fell for a fourth day as Hurricane Gustav caused
minimal damage to refineries and rigs in the Gulf of Mexico
and a strengthening dollar curbed the appeal of commodities
as an inflation hedge.
An aerial survey of platforms and rigs in the Gulf of Mexico
found no structural damage and no oil spills, the U.S. Coast
Guard said. Oil fell to a five-month low yesterday after the
dollar rose to near a seven-month high against the euro on
speculation the U.S. economy will outperform Europe and Asia.
Crude oil for October delivery fell as much as 56 cents, or
0.5 percent, to $109.15 a barrel at 10:06 a.m. Singapore
time on the New York Mercantile Exchange. Prices are up
48 percent from a year ago. Yesterday, futures lost $5.75,
or 5 percent, to settle at $109.71 a barrel, the lowest close
since April 8.
Oil, down more than $37 from its July record, dropped because
Gustav inflicted less damage to states along the Gulf than
occurred in 2005 when Hurricanes Katrina and Rita struck.
Brent crude oil for October settlement fell 59 cents, or
0.5 percent, to $107.75 a barrel at 9:53 a.m. Singapore
time. Yesterday, the contract declined $1.07, or 1 percent,
to $108.34 a barrel on London's ICE Futures Europe
exchange, the lowest close since April 10.
Oil prices are unlikely to drop below $100 a barrel because
OPEC will cut production to support the price.
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