Commodity Online
NEW YORK : World oil prices fell more than $ 3 a barrel Tuesday and were pushed back below $128 on forecasts tropical storm Dolly will miss oil installations and the dollar rebounded against the euro, reducing the appeal of commodities.

Light, sweet crude for August delivery settled $3.09, or 2.4 per cent, lower at $127.95 a barrel on the New York Mercantile Exchange, its lowest settlement price since June 5. The August contract expires today, and most trading volume had shifted to the September contract, which settled at $128.42, down $3.40, or 2.6 per cent.

Gasoline for August delivery fell 7.33 cents, or 2.3%, to $3.1438 a gallon in New York. Futures reached a record $3.631 a gallon on July 11.

Brent crude for September delivery on the ICE futures exchange settled $3.06 lower at $129.55 a barrel.

The prospect of Dolly sweeping through the main oil-producing section of the Gulf of Mexico had helped futures mount a partial recovery on Monday from last week's 11 per cent plunge. But as Dolly proceeded through an empty section of the Gulf, oil futures again headed lower.