WTI, Brent drop more than $2 per barrel

September contracts for West Texas Intermediate crude were down on Thursday, dropping $2.33 to $71 per barrel on the New York Mercantile Exchange, while Brent crude for September delivery was $2.22 cents lower to $69.42 on the Intercontinental Exchange in London.

Prices were lower as weather news improved, with a forecast that while Hurricane Dean will likely strengthen to at least a Category 2 storm it will probably miss oil production areas in the Gulf of Mexico.

In addition, the preliminary assessment is that while Tropical Storm Erin, now downgraded to a tropical depression, dumped a lot of rain on Texas it did not cause any damage to oil facilities there.

Some analysts also said that prices could be dropping due to investor worries that demand could decline if equities markets continue to fall and growth in the economy slows.