Oil prices were little changed near $109 a barrel on Thursday as traders weighed concerns over slowing demand from major consumer countries against further hurricane threats to the US oil sector. Prices have tumbled by more than $6 since Friday after Hurricane Gustav.
Which swept through the major oil-producing Gulf of Mexico and made landfall near New Orleans on Monday, turned out to be less destructive than feared. US crude slipped 15 cents to 109.20 a barrel by 0632 GMT while London Brent crude fell 6 cents to $108.00, a sixth consecutive day of losses. Signs of slowing oil demand in the United States and other consumer nations have helped drag oil prices well below their peak near $150 hit in July, but many traders remain anxious that new storms may not spare oil facilities.
Tropical Storm Hanna intensified to a slighter degree as it swirled over the Bahamas toward the south-east US Coast. Recent gains in the US dollar also weighed on prices. The dollar dipped against the euro on Thursday after having hit an eight-month high a day ago, as investors trimmed positions ahead of interest rate decisions by the European Central Bank and Bank of England, which are expected to leave rates unchanged.
Any disruption caused by Gustav will not be fully reflected in data until next week. The set of data is due a day later than usual because of a public holiday in the United States on Monday.