Oil dips below $100 a barrell

Crude oil futures briefly sank below the psychologically important US$100 a barrel mark for the first time in five months today, showing that investors believe a worsening global economy will continue to drive down demand for some time in the US and elsewhere.

Petrol prices in the US, however, jumped at the wholesale level as Hurricane Ike swept through Gulf of Mexico, prompting companies along the Texas coast to shut down refining and drilling operations.

On the New York Mercantile Exchange, light, sweet crude for October delivery rose 4c to $100.91 a barrel in afternoon trading, after briefly sinking to $99.99.

In London, October Brent crude fell 73c to $96.91 a barrel on the ICE Futures exchange, after closing at a six-month low in the previous trading session.

October gasoline futures climbed 0.12c to $2.75 a gallon on Nymex.

The fact that US fuel demand is so weak currently might mean the recent surge in the wholesale price of gasoline - which rose to about $4.85 a gallon in the Gulf Coast market Friday - might not be passed along to consumers unless Ike's impact is severe and long-lasting.