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Crude oil settles at $109.35 a barrel

04 September 2008 10:04 (UTC +04:00)

Oil prices inched lower Wednesday as a stronger dollar and slowing demand for crude overshadowed an almost total shutdown of energy output in the Gulf of Mexico after the passage of Hurricane Gustav.
Light, sweet crude for October delivery fell 36 cents to settle at $109.35 a barrel on the New York Mercantile Exchange, after earlier dipping as low as $107.22.At the pump, a gallon of regular fell to a new national average of $3.681. Thatâ€™s less than half a penny lower than Tuesdayâ€™s average and more than 10 percent off the all-time record of $4.114 set July 17.
Crude has dropped about $40, or 26 percent, since surging to a record $147.27 a barrel on July 11, weighed down as a U.S. economic slowdown spreads overseas and curbs demand for petroleum products.
A rising greenback encourages investors, who bought oil as a hedge against inflation, to now sell their contracts. The euro fell to $1.4493 from $1.4518 late Tuesday in New York.
In London, October Brent crude fell 28 cents to settle at $108.06 a barrel. AP