Oil drops 1.7% to below $77

ePageTitle">Oil drops 1.7% to below $77

By: Daniel Nonor

By: Daniel Nonor
Oil has fallen 1,7% to below $77 as forecasts indicate tropical storm Alex will skirt the main production region in the US Gulf of Mexico, limiting disruption there to a few precautionary shutdowns.

The price drop accelerated with slumping Asian stock markets and a strengthening dollar. Shanghai's main index plunged 4%, while Japan's Nikkei was poised for its worst quarter since October-December 2008 as European debt worries curbed investors' risk appetite.

US crude for August tumbled as much as $1,35 to $76,90 a barrel and was down $1,22 at $77,03 by 0622 GMT, extending Monday's 0,77% decline.

Prices have still climbed 19% from a May 20 trough below $65 and are about $10 lower than an early-May 19-month peak above $87. ICE Brent declined $1,01 on Tuesday to $76,58.

The US National Hurricane Center forecast Alex, located about 520 miles (835 km) southeast of Brownsville, Texas, would make landfall as a hurricane near the Texas-Mexico border early Thursday. Source: businessday