Oil hits 7 months low on context of fall of lehman bros.

Oil prices slumped nearly $3 to a seven-month low on Tuesday as the collapse of Lehman Brothers ignited fears that the credit crisis may weaken the global economy and further depress energy demand.
Reports that Hurricane Ike caused minor damage to the United States' oil platforms and refineries also weighed on prices, adding to the previous session's more than $5 fall and down almost 37-% fall from its peak of over $147 in mid-July.
US light crude for October delivery CLc1 fell $2.88 to $92.85 a barrel by 0148 GMT. And London Brent crude LCOc1 fell $2.84 to $91.40 a barrel at 0112 GMT.
"Lehman Brothers' failure has magnified existing worries about the international economic outlook, adding to fears of slower demand for commodities," said David Moore, commodity strategist at Commonwealth Bank of Australia.
"Early reports suggest that Hurricane Ike ... caused only limited structural damage to oil infrastructure," he added.
On Monday, Wall Street had its worst day since markets reopened after the September 11 attacks, with investors fleeing to safer havens such as gold.
Lehman Brothers' bankruptcy, the sale of Merrill Lynch and the struggle of American International Group all stirred fears about the US financial sector's stability and the outlook for the global economy.
Following crude oil sharp losses -- down 20 % since the start of the month -- technical analysts now focused on support below $90 a barrel and into the $85 to $80 a barrel region for the next leg lower.
A big chunk of US energy production shut by Hurricane Ike could restart within a week, with the only reports of damage to refineries so far included Shell's Deer Park Plant and ConocoPhillips' Alliance refinery.
Nigerian militants on Monday attacked oil facilities, killing a guard and forcing evacuation of nearly 100 workers; in a third day of fighting with security forces that has disrupted oil output.
Traders are eyeing US consumer price data at 1230 GMT as well as the minutes of the Federal Open Market Committee for any further sign of bad news in the US economy.
The market is also looking ahead to Wednesday's US oil stocks data, expected to show a 3.4 million barrel draw down in crude inventories, a 2.0 million barrel drop in distillate supplies and a 4.0 million barrel decline in gasoline stocks.