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Hurricane slams Haiti and oil markets

PORT-AU-PRINCE, Haiti - Hurricane Gustav dumped torrential rains across southern Haiti yesterday, killing at least one man and threatening crops amid protests over high food prices. Oil prices rose on fears the storm could batter oil rigs in the Gulf of Mexico.

PORT-AU-PRINCE, Haiti - Hurricane Gustav dumped torrential rains across southern Haiti yesterday, killing at least one man and threatening crops amid protests over high food prices. Oil prices rose on fears the storm could batter oil rigs in the Gulf of Mexico.

Last night, forecasters said Gustav had weakened to a tropical storm over Haiti. The National Hurricane Center said the storm's maximum sustained winds dropped from hurricane strength to 70 m.p.h. But the storm is expected to get stronger later this week.

The center said the storm could become a Category 2 hurricane tomorrow, with winds of 96 m.p.h. or higher, on its expected path between Cuba and Jamaica.

Forecasters were reluctant to predict the storm's path beyond the weekend, the third anniversary of Hurricane Katrina.

Yesterday afternoon Gustav roared ashore near the city of Jacmel, with top sustained winds near 90 m.p.h.

Trees toppled as the storm, which lingered for hours over Haiti's poor, deforested southern peninsula, and water levels were rising in banana, bean and vegetable fields. One man was killed in a landslide, civil protection director Marie Alta Jean-Baptiste told Radio Metropole.

A powerful storm in the gulf could force shutdowns on the offshore rigs that account for a quarter of U.S. crude production and much of its natural gas. Royal Dutch Shell PLC said it could begin evacuating workers as soon as today.

If the storm continues on its path, it could drive up U.S. gasoline prices by 10 cents a gallon ahead of Labor Day weekend, said James Cordier, president of the Tampa, Fla.-based Liberty Trading Group and OptionSellers.com.