Oil prices fell $5 a barrel to a six-week low this evening as a tropical storm moving over the Gulf of Mexico was expected to miss most major oil and gas installations.
The losses come after the biggest weekly price decline in oil's history last week. That chopped $17 dollars off the cost of a barrel as dealers focused on mounting US economic troubles and sliding demand. US crude fell $5.03 to $126.01, while London Brent was off $4.50 at $128.11.
Tropical Storm Dolly, which is expected to become a hurricane within two days before hitting the coast near the border of Mexico and Texas, has triggered only minor production shutdowns from offshore oil platforms.
Oil prices have fallen more than 14% over the past 10 days from a July 11 high of more than $147. Supplies have grown more comfortable as demand for petrol has fallen in the US in response to high prices and worries about the economy.
