Nymex crude below $70 per barrel

Crude oil prices fell below $70 in New York on Tuesday as Hurricane Dean weakened to a Category 2 storm, making it less likely that there will be any serious or lasting damage to Mexican oil facilities although there will be some supply disruptions after a number of off-shore drilling rigs were evacuated ahead of the storm.

Analysts warned, however, that prices could rise again if another hurricane approaches the oil production region of the Gulf of Mexico or if the Organization of Petroleum Exporting Countries does not increase production quotas when it meets next month.

West Texas Intermediate crude for September delivery was $1.67 lower to $69.45 per barrel in afternoon trade on the New York Mercantile Exchange, while October contracts for Brent crude fell $1.21 to $68.64 per barrel on the Intercontinental Exchange in London.

Nymex September gasoline was 8 cents lower to $1.86 per gallon, while October heating oil dropped 3 cents to $1.97 per gallon.

October natural gas, meanwhile, was 18 cents lower to $6.03 per million British thermal units.

At the pump regular unleaded gasoline prices in the US, however, were up around 1 cent to a national average of $2.777 per gallon overnight.