Crude Oil on 4 Months Low

Crude oil fell to its four months lowest after Hurricane Gustav weakened, easing concern of widespread damage to drilling rigs and refineries.

Gustav was downgraded to a Category 2 hurricane, the second- weakest of the five strength levels, the National Hurricane Centre in Miami said. Companies have closed 96% of offshore oil production and about 10% of US. refining capacity in preparation for the system.

Crude oil for October delivery fell as much as $US4.83, or 4.2%, to $US110.63 a barrel in electronic trading on the New York Mercantile Exchange. It earlier rose as much as 2.2% to $US118.