Crude Falls $108 As Fears Of Economic Slowdown

September 3, 2008 10:35 a.m. EST

London, England (AHN) - World crude oil prices continues its sharp decline Wednesday closing below $109 after fears of oil production slowdown due to Hurricane Gustav subsided, and on concerns of global economic slump that would lower demand for oil.

After Wednesday's close, the New York light, sweet crude oil slid by over a dollar and traded at $108.64 per barrel, while the Brent crude dropped $1.04 and closed at $107.30.

Global prices of oil have been dropping sharply the past week after reaching a record-high $147 per barrel in July, amid fears of economic slowdown of major economies.

Analysts predict that the prices of oil could have slid further if not for the fears oil production in the U.S. Gulf coast would stop due to Hurricane Gustav.

David Moor of the Commonwealth Bank of Australia said, "Had it not been for the hurricane, we would have seen a lower price profile over the last week."

The prices of crude have dropped by over $6 since Friday.