Oil Prices Dropped Amid Slowing Demand

Oil prices fell slightly to below $109 a barrel Wednesday, weighed down by slowing demand in the United States and other consuming nations and signs the US oil sector would recover quickly from Hurricane Gustav.

US crude fell 36 cents to settle at $109.35 a barrel at 1700 GMT, after ending on Tuesday below its 200-day moving average for the first time since May 2007.

London Brent futures fell 32 cents to $108.02 per barrel on the ICE Futures.