The price of crude oil slid to a two-month low point as Hurricane Dean remained on course to avoid hitting vital energy facilities in the US Gulf of Mexico.
The price of Brent North Sea crude dropped to $68.23 per barrel - the lowest level since June 11.
It later stood at $68.60 per barrel, down $1.25 from Monday's close.
New York's main futures contract, light sweet crude for delivery in September, shed $1.51 to $69.45 per barrel.
Hurricane Dean earlier today pounded the Yucatan Peninsula on its way to the oil-rich Gulf of Mexico after hitting Mexico's Caribbean coast as a category five storm.
However, it slowed as it swirled over land but could regain strength when it hits the warm Gulf of Mexico waters, probably tonight.
The International Energy Agency said today it was slightly concerned about Dean's impact on Mexican oil production - but believed its passage will not affect global oil markets.
