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| Version 1 | Version 2 |
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| Oil slides toward $100 a barrel | Oil slides toward $100 a barrel |
| (about 1 hour later) | |
| Crude oil prices have fallen back toward $100 a barrel, as oil facilities in the Gulf of Mexico were spared by Hurricane Gustav. | Crude oil prices have fallen back toward $100 a barrel, as oil facilities in the Gulf of Mexico were spared by Hurricane Gustav. |
| US crude touched a five-month low of $105.46 a barrel, down almost $10 from Friday's closing price. London's Brent crude fell $3.46 to trade at $105.95. | |
| While still high in historical terms, crude is now significantly below the record $147 a barrel hit in early July. | While still high in historical terms, crude is now significantly below the record $147 a barrel hit in early July. |
| The sharp fall in prices contributed to a strong rally on US stock markets. | |
| 'Market relief' | |
| We are getting a big relief rally in the stock market from a drop in oil David Resler, Nomura Securities | |
| The Dow Jones opened more than 240 points higher in early exchanges after the long Labor Day weekend and was up 181.2 points at 11,724.7 by mid-morning in New York. | |
| "We are getting a big relief rally in the stock market from a drop in oil and dodging a disaster in New Orleans," said David Resler, chief economist for Nomura Securities. | |
| In less positive economic news, a closely-watched report indicated that activity in US factories contracted last month while construction spending fell by 0.6%. | |
| Figures from the Institute for Supply Management for factory activity were weaker than expected, prompting one economist to say the US was on the "precipice of a recession". | |
| "It tells us that the manufacturing sector remains essentially stalled," Mr Resler added. | |
| Hurricane Gustav weakened as it hit the US Gulf of Mexico coast south-west of New Orleans and was downgraded to a tropical storm after hitting Fourchon, a port in Louisiana. | |
| Initial checks by some US refiners reported no damage from Gustav, which had originally been classed as the biggest threat to the sector since devastation from Hurricane Katrina in 2005. | Initial checks by some US refiners reported no damage from Gustav, which had originally been classed as the biggest threat to the sector since devastation from Hurricane Katrina in 2005. |
| Falling demand | |
| Fears of lower global demand for oil also pressured crude prices. | |
| Oil traders speculated that slowing global economic growth would dampen demand for crude, even in booming China and India. | |
| "The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. | "The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. |
| Opec, the association of oil producing countries, holds its regular meeting next week in Vienna, and there has been speculation that some of its members, such as Iran and Venezuela, would like it to tackle falling oil prices. | Opec, the association of oil producing countries, holds its regular meeting next week in Vienna, and there has been speculation that some of its members, such as Iran and Venezuela, would like it to tackle falling oil prices. |
| Opec members produce about 50% of the world's oil supply. | Opec members produce about 50% of the world's oil supply. |