Oil falls to $112 after storm moves on

Oil prices fell to around $112 on Tuesday after a tropical storm in the Gulf of Mexico avoided oil and gas installations.
U.S. crude was 54 cents lower at $112.33 a barrel by 1455 GMT. London Brent crude fall 86 cents to $111.08.
Oil fell for the fourth trading day as Tropical Storm Fay, the sixth storm of the 2008 Atlantic season, swept over Florida.
It did not reach hurricane strength or cause major disruption in the Gulf of Mexico, the production hub of the U.S. oil industry.
As the storm concern faded, the market focus was likely to shift to U.S. oil inventory data from the Energy Information Administration (EIA) and the expiry of front month U.S. crude, or West Texas Intermediate, on Wednesday.
"With the storm now a non-event, the markets will be next looking at an orderly expiration in the September WTI expiration, (tomorrow), as well as the upcoming EIA numbers (also tomorrow)," MF Global said in a research note.
Analysts expected the data to show a 900,000 barrel increase in U.S. crude oil inventories.
Investors are split on the outlook after the price of oil has fallen about 24 percent from a record high above $147 hit in mid-July.
A fall in oil use in the United States and other developed countries as economies slow continues to pressure prices, while Chinese demand growth is still robust.
Dallas Federal Reserve Bank President Richard Fisher said on Monday that Chinese economic growth can deliver a potentially massive boost to global energy demand with clear implications for long-term oil prices.
Investors who rely on charts and historical data to map market direction closely watched the $110-$111 area.
They said oil prices might rebound from there but if prices should fall below the level, further losses could be expected.
"There is strong support for prices to drift lower towards $100 a barrel. We are only about $10 a barrel away, and I won't be surprised to see $105 a barrel by next month," said Jonathan Kornafel, Asia director at U.S.-based options trader Hudson Capital Energy.