OPEC member Venezuela plans to appeal for a production cut if oil continues to slide. The appeal is expected to be made at an OPEC's meet in September. News of an anticipated supply cut has raised concerns and spiked up prices. New York's main contract, light sweet crude for September delivery settled at US$114.53. In London, Brent North Sea crude for October settled at US$113.2.
Earlier in the day, markets relaxed as Tropical Storm Fay skipped energy production facilities in the Gulf of Mexico and data for July on the US economy fuelled worries about slowing demand. The US Labor Department reported its producer price index, a gauge of wholesale inflation, unexpectedly soared by the biggest margin in 27 years - 9.8% from a year ago. The US Commerce Department reported construction of new homes fell 11% to the lowest level in 17 years.