01 September 2008 15:46 [Source: ICIS news]
LONDON (ICIS news)--Crude prices fell by more than $4/bbl on Monday to take Brent crude on ICE Futures to below $110/bbl for the first time since early May on the back of a stronger US dollar and diminishing threat from Hurricane Gustav.
By 14:25 GMT, October Brent crude had hit a low of $109.20/bbl, a loss of $4.85/bbl from the Friday close of $114.05/bbl, before recovering to around $109.70.
At the same time, October NYMEX light sweet crude futures was trading around $111.20/bbl, having hit a low of $110.63/bbl, a loss of $4.83/bbl from the previous close.
While US crude trading was limited due to Labor Holiday Monday, Gustav, which had been supporting prices over its potential disruption to oil facilities in the Gulf of Mexico, lost strength as it hit land and was downgraded to Category 2 Hurricane.
More downward pressure was due to the US dollar gaining ground in the currency markets after a number of positive ?xml:namespace>
Last Thursday, prices saw an intraday drop of more than $4/bbl as the International Energy Agency (IEA) had said that it was prepared to act in case of heavy disruptions caused by the hurricane.
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