Storm stalls production, but oil prices still drop

Published: Tuesday, Sept. 2, 2008 12:10 a.m. MDT
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Hurricane Gustav took a direct hit on the Gulf of Mexico, temporarily suspending 100 percent of oil production in the gulf, yet gasoline prices appear lower.

It seems an improbable scenario, but energy prices are often driven more by psychology than by high winds. And unless inspections this week find unexpected damage, pump prices are likely going down.

Crude oil for October delivery slid to $111 a barrel Monday, from $115.46 on Friday, and to its lowest point since April.

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