Crude oil futures touched $112.48 the lowest since May 2 2008

Crude oil was little changed as Russia called off military action in Georgia and the dollar dropped from a 5 1/2-month high against the euro, curbing the appeal of commodities as an inflation hedge. Crude oil for September delivery fell to $112.31 a barrel on the New York Mercantile Exchange at the time of going to the Press. Futures touched $112.48 earlier on Tuesday, the lowest since May 2. Prices are up 60 per cent from a year ago.

Prices rebounded after Russian President Dmitry Medvedev announced the end to the five-day offensive in Georgia, a country that connects the oil-rich Caspian Sea region with world markets. BP stopped pumping oil into a pipeline from Azerbaijan to the Black Sea coast because of concern over security. The dollar declined 0.1 per cent to $1.4923 per euro at 9:02 am in New York, from $1.4909 yesterday. It touched $1.4816, the strongest since February 26.