Oil drops $5 as Gustav fades

September 02, 2008

Crude oil toppled to a five-month low as initial signs suggest Gustav did not cause major damage to oil operations in the Gulf. A steep drop in energy prices did not prevent stocks from turning sour after solid early gains. The Dow dropped 26 points to 11,516. The S&P 500 lost 5 points to 1,277. The Nasdaq fell 20 points to 2,349. Conway Gittens reports from New York.