Following weather forecaster's downgrading of Hurricane Gustav from a Category 3 to a Level 1 hurricane, oil prices quickly dropped. The downgrade followed Gustav hitting Fourchon, a port in Louisiana, and quickly weakening. US light crude oil fell $4.24 to $111.20 a barrel by late trade in Europe. London's Brent crude settled down $4.64 to $109.41 a barrel. According to industry professionals, following Hurricane Katrina in 2005, (a Category 3 hurricane which badly damaged 100 of the 4,00 oil and gas platforms in the Gulf of Mexico and caused massive spikes in oil prices), the energy sector and other industries in the Gulf of Mexico are much better prepared for this type of disaster. Phil Flynn, an analytst for Alaron Trading states that, "The industry is much more prepared and taking things much more seriously. That's why so much has been shut down so quickly." In preparation for Hurricane Gustav, New Orleans and surrounding areas were evacuated early in anticipation of the storm.
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