Oil plunges to near 5-month low

By Catherine Clifford, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Oil futures on Tuesday tumbled to levels not seen since early April on a strengthening dollar and concerns that an economic slowdown has crippled demand for energy.

U.S. crude futures for October delivery dropped $5.75 a barrel to settle $109.71. It was the lowest oil has settled since April 8, according to the U.S. Energy Information Administration.

Oil prices hit their lows for the day early Tuesday. Prices tumbled nearly $10 from Friday's settlement of $115.46 a barrel, according to NYMEX, as traders bet that damage to Gulf oil infrastructure from Hurricane Gustav was less than had been anticipated.

However, damage reports from the government and companies operating in the Gulf have not been released. "We're still in assessment mode, but so far, things are looking good," said Cathy Landry, a spokeswoman for the American Petroleum Institute.

Oil plunges to near 5-month low....