Crude oil prices down after jump on storm worries

Crude oil prices were up in early trade in New York on Monday on concerns that Tropical Storm Fay would disrupt oil production in the Gulf of Mexico.

However, as later forecasts showed Fay expected to barely reach hurricane status and to travel up Florida and the East Coast of the United States over the next week, missing key oil production facilities further to the west.

Some companies that had earlier evacuated personnel from platforms in the Gulf have since allowed workers to return.

Prices also fluctuated as investors remained concerned about the effect of the conflict between Georgia and Russia on delivery of oil supplies in the region, but there was news that the Turkish pipeline that was bombed recently is likely to be open again soon after repairs.

West Texas Intermediate crude for September delivery was down 59 cents to $112.90 per barrel at the close of floor trade on the New York Mercantile Exchange after going as high as $115.35 per barrel earlier, while Brent crude dropped 59 cents to $111.96 on the ICE Futures Europe exchange in London.

Nymex September gasoline was down 3 cents to $2.83 per gallon while October natural gas dropped 19 cents to $8.01 per million British thermal units.

Meanwhile, US pump prices for regular unleaded gasoline was down to $3.741 per gallon, down 9 percent from its peak in mid-July.