Oil fell more than $2 to below $108 a barrel today, weighed down by slowing demand in the US and other consuming nations and signs the US oil sector would recover quickly from Hurricane Gustav.
US crude traded down $2.16 to $107.55 a barrel. London Brent crude fell $1.79 to $106.55 a barrel.
Prices have fallen by more than $7 from Friday after Hurricane Gustav proved to be less devastating than feared.
Brent had tumbled below $105 at one stage yesterday to reach its lowest level in four months after Gustav appeared to have wreaked less damage than feared on Gulf of Mexico US energy facilities.
Oil prices have eased about 25% since reaching record levels above $147 in July, largely because of falling demand as the global economy slows.
Meanwhile, the latest weekly snapshot of US crude inventories that is closely followed by the market has been put back 24 hours until tomorrow owing to the Labor Day public holiday in the US last Monday.
