Oil drops below $110 as Gustav fades

This is good news, albeit on a temporary basis. We need to shift away from carbon based energy sources to nuclear, solar, wind and whatever else works. (Of course it blasted the TSX today)

NEW YORK - Oil fell below $110 a barrel on Tuesday for the first time since April as traders bet the U.S. oil industry would recover quickly from Hurricane Gustav.

Early indications that oil installations suffered only minor damage from the storm returned the market's focus to bearish factors including slowing global energy demand growth, rising inventories and a stronger U.S. dollar.

U.S. crude settled down $5.75 at $109.71 a barrel after trading as low as $105.46. London Brent crude settled down $1.07 at $108.34 a barrel.

U.S. crude settled below its 200-day moving average price for the first time since May 2007, which is considered by many traders evidence that prices may fall further. Oil prices have tumbled nearly $40 a barrel since the July 11 record high of $147.27 as bullish sentiment has evaporated.