NEW YORK (CNNMoney.com) -- Oil futures tumbled more than $7 on Tuesday after Hurricane Gustav hit the Gulf region with less force and apparently less damage than initially feared. Prices were also pulled lower by a strengthening dollar.
U.S. crude futures for October delivery were at $108.61, or $6.85 lower at 8:13 a.m. ET.
Oil prices had plunged nearly $10 from the settlement of $115.46 on Friday to as low as $105.88 a barrel. The New York Mercantile Exchange was closed for Labor Day, but held a special electronic trading session on Sunday afternoon that ended $1.24 higher to $116.70 a barrel.
Adding further pressure was the U.S. dollar, which climbed against most major currencies early Tuesday. Becausae crude is traded in the U.S. currency around the world, a stronger dollar puts downward pressure on oil prices.
