US stocks rise as oil prices fall

Over in the US, oil prices fell and US stocks rose on Tuesday, after Hurricane Gustav spared most of the energy operations in the Gulf of Mexico.

The US dollar rose against most major currencies on Tuesday, as oil prices fell to their lowest level in 5 months.

Ahead of Hurricane Gustav, investors were worried that the storm might seriously disrupt US oil production in the Gulf of Mexico, sending oil prices higher. But the hurricane weakened without causing serious damage to energy infrastructure. Oil facilities and coastal refineries are expected to resume production very soon.

Gustav has been downgraded to a tropical depression. Eight deaths were attributed to the storm in the US. In contrast, the death toll from Katrina three years ago exceeded 1,600.