Weaker energy demand and turmoil in the US financial system have caused oil prices to drop to a seven-month low of nearly 91 dollars. Brent North Sea crude for October delivery tumbled 4.84 dollars to 92.74, the lowest level since February while New York's main contract, light sweet crude for October, lost 4.24 dollars to reach 96.94 dollars.
The weekly average of the Organization of Petroleum Exporting Countries (OPEC) also hit its lowest in the last seven months, dropping to 97.40 U.S. dollars per barrel last week.
Meanwhile, a stronger dollar also contributed to the current drop in oil prices. This is while tensions were somewhat eased after Hurricane Ike, which slammed into the US Gulf Coast on Saturday, did not damage oil platforms as expected.