The New Nation - Internet Edition

Crude oil fell below $120 a barrel in New York as meteorologists forecast Tropical Storm Edouard will miss most offshore production facilities in the U.S. Gulf Coast while approaching Texas. Oil dropped 3 percent yesterday as Edouard's wind speed eased concern that offshore and platforms would be damaged by the storm. The Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline yesterday since March. ``The impact from Edouard seems very limited though storms can be unpredictable,'' said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. ``The sentiment towards oil has become bearish because of weak demand.'' Crude oil for September delivery fell as much as $1.50, or 1.2 percent, to $119.91 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $120 at 2:46 p.m. Singapore time. Yesterday, crude oil dropped $3.69 to settle at $121.41 a barrel in New York, the lowest close since May 5.