Crude's decline continues

NEW YORK (AP) -- Oil prices are lower as traders focus on slowing demand for crude. That's overshadowing the fact that there's been a near total shutdown of energy output in the Gulf of Mexico after Hurricane Gustav.

Light, sweet crude for October delivery fell $1.05 to $108.66 a barrel on the New York Mercantile Exchange, after earlier dipping as low as $107.22.

Nearly all oil and natural gas output remains shut down as energy firms assess platforms, rigs and pipelines and work to redeploy evacuated workers.

Crude has dropped about $40, or 26 percent, since surging to a record $147.27 on July 11th.

The drop in oil prices and other commodities is starting to take a toll on large investors who bought into the rally too late.

At the pump, auto club AAA says the average price for regular unleaded is down to $3.68 a gallon.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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