Oil prices wavered Monday, falling below $115 per barrel as traders monitored fighting between Russia and Georgia that could potentially disrupt supplies. Buying was limited as the dollar extended its advance against the euro. Oil hovered at its lowest levels since early May, as the dollar edged higher against the euro and pound. The strengthening US currency, as well as signs that demand growth is moderating in key energy-consuming countries around the world, has sapped the momentum from this year's surge in energy prices. “The market's still kind of reeling,” said Darin Newsom, senior analyst at DTN in Omaha, Neb. He said the recent drop in crude attracted a bit of buying Monday, particularly as many traders focused on the Russia-Georgia conflict. But, he said, more signs of economic slowdown could take prices back below $100 a barrel - a level not seen since early April. After falling nearly $10 a barrel last week, light, sweet crude for September delivery fell 30 cents to $114.90 a barrel in midmorning trading on the New York Mercantile Exchange, after falling below the $115 a barrel mark. In London, Brent crude for September delivery rose 7 cents to $113.40 a barrel. The euro fell to $1.4993, and the pound fell to $1.9187, while the dollar is holding near 110 yen. A weak dollar helped boost oil prices earlier this year, because dollar-denominated commodities are often used as hedges against inflation and a falling US currency. Gains in the currency tend to reverse that trend. Peter Beutel, president of the energy risk management firm Cameron Hanover, wrote in a research note that investors appear to be selling commodities to get back into stocks, which traded modestly higher by late morning trading on Monday.
