US oil prices dropped by $2 to a six-month low below $100 a barrel today as dealers bet on a swift recovery of the nation's energy production after Hurricane Ike.
The losses add to a steady downtrend since mid-July's peak of over $147 a barrel amid mounting evidence that high energy costs and a weakening economy are cutting deeply into fuel consumption.
Oil prices fell $1.88 to $99.30 a barrel this afternoon after falling as low as $99.12 - the lowest since March 20th.
The New York Mercantile Exchange opened a special energy trading session today due to increased trader interest about Hurricane Ike, which slammed into the Houston energy hub yesterday leaving a quarter of US oil and refined fuel production idled and millions without power.
Early reports from emergency officials and oil companies indicated little or no severe damage to infrastructure - signaling a possible quick recovery to production in the coming days.
Even as oil prices fell, prices at the US pumps shot up more than six cents to nearly $3.80 a gallon, adding to a five cent increase today, according to AAA's daily survey of more than 100,000 service stations.