Oil futures fell sharply Monday, extending their retreat from $100 as investors sold on concerns that a cooling economy will curb demand for oil and gasoline.
Comments by Treasury Secretary Henry Paulson Monday suggesting there is no simple fix for the nation's housing crisis added to worries about the economy raised by last Friday's Labor Department jobs report; the government's data showed that employers added far fewer jobs last month than expected.
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Traders seemed to shrug off news of a confrontation Sunday between U.S. and Iranian warships in the Strait of Hormuz.
"The market overall is still a bit spooked by the larger economy question," said Kevin Saville, managing editor for the Americas energy desk at Platts, the energy research arm of the McGraw-Hill Cos.
A stronger dollar Monday also weighed on oil prices. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling. Many analysts believe the weakening dollar helped draw speculative investors into oil markets this fall and winter, driving oil prices above $100 a barrel last week.
On Monday, light, sweet crude for February delivery dropped $2.82 to settle at $95.09 a barrel on the New York Mercantile Exchange. It was the third day in a row oil prices have declined.
Earlier Monday, oil prices rose after U.S. military officials said Iranian Revolutionary Guard boats harassed and provoked three U.S. Navy ships in the strategic Strait of Hormuz.
"There was a bit of a jump there ... but unless there were shots being fired, it wasn't going to be sustained," Saville said.
Concerns that the West's standoff with Iran could grow into a wider confrontation helped boost oil prices last year.
At the pump, meanwhile, gas prices rose 0.2 cent overnight to a national average of $3.106 a gallon, according to AAA and the Oil Price Information Service. Gas prices have been on the rise for weeks, following oil's jump back into record territory. But with oil prices now sliding, the gains at the pump are likely to be limited, analysts say.
February gasoline futures fell 8.12 cents to settle at $2.4298 on the Nymex Monday.
Heating oil futures fell on forecasts for unseasonably warm weather in the Northeast over the next few days, said Addison Armstrong, director of exchange traded markets at TFS Energy Futures LLC in Stamford, Conn., in a research note.
"Longer range forecasts are also expected to yield warmer than usual temperatures for the month of January, keeping a lid on demand until colder temperatures return," Addison said.
February heating oil futures fell 9 cents to settle at $2.5935 a gallon on the Nymex.
February natural gas, on the other hand, rose 3.8 cents to settle at $7.879 per 1,000 cubic feet on revised forecasts for cooler weather in the Midwest, which relies more heavily on natural gas than heating oil.
In London, Brent crude futures fell $2.40 to settle at $94.39 a barrel on the ICE Futures exchange.
Associated Press Writers George Jahn in Vienna and Gillian Wong in Singapore contributed to this report.
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A man killed his girlfriend, then filleted and cooked parts of her body before calling police to tell them what he was doing, authorities said Sunday.
Christopher Lee McCuin allegedly killed his girlfriend and then called police to say he was boiling her body parts.
Christopher Lee McCuin, 25, called 911 on Saturday and told an emergency dispatcher he had killed Jana Shearer, 21, and was boiling her body parts at his mother's home, said Smith County Sheriff J.B. Smith.
When authorities arrived at the home, they found Shearer's mutilated body, one ear boiling in a pot of water on the stove and a fork sticking out of some human flesh sitting on a plate on the kitchen table.
Authorities said it was unclear whether McCuin consumed any part of Shearer's body.
"We cannot prove that he did," Smith told The Associated Press. "He was either going to, had been or led us to think that he was doing it."
Authorities believe Shearer, 21, was abducted from her home Friday night and killed. Her death and mutilation was apparently the beginning of a crime spree that also included McCuin allegedly stabbing the boyfriend of his estranged wife and breaking into a business.
The stabbing victim is in critical condition at an area hospital, officials said.
McCuin, of Tyler, about 110 miles east of Dallas, was charged with capital murder. He was being held in the Smith County Jail on a $2 million bond Sunday and did not have an attorney, officials said. He was scheduled to be arraigned Monday, Smith said.
Before he called 911, McCuin told his mother and her boyfriend to look in their garage, authorities said. There the couple saw the remains of Shearer. McCuin's mother and her boyfriend fled the home and flagged down a police officer. McCuin dialed authorities after they left. Watch how killing shocks quiet Texas neighborhood »
A man who answered the door Sunday night where the body was found declined to comment.
Shearer appeared to have died from blunt trauma to her head, Smith said. She may have been kidnapped Friday night, when her mother witnessed her get into McCuin's truck.
"There was no struggle but she could see the girl left with no shoes, no purse and no cell phone," Smith said.
McCuin then drove to his estranged wife's home, where he stabbed William Veasley, 42, Smith said. McCuin was still in that home when deputies arrived, but escaped in his car after a short chase, Smith said.
"We thought it was a disturbance or an assault," Smith said.
McCuin wasn't seen again until Saturday morning, when he arrived at his mother's home and called her into the garage so she could "come see what he had done," Smith said.
When sheriff deputies arrived, McCuin barricaded himself in the home for a short time before coming out. After he emerged, officers entered and found Shearer's body, Sgt. Gary Middleton said.
Detectives were trying to determine where the slaying happened. They think McCuin drove to his mother's home with the dead woman in the back seat of his extended-cab pickup, Smith said.
Freddy Castillo, who lives two houses down, said he frequently heard McCuin and his girlfriend argue in the house and the yard.
"They would get pretty loud," Castillo said. "They'd yell back and forth and then he would just get in his car and leave
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A family friend said Monday that Princess Diana had described her relationship with Dodi Fayed as "all over" just two weeks before the couple died in a car crash in Paris.
Diana, Princess of Wales, in London on March 6, 1996.
1 of 2 Under questioning at the British inquest into the deaths, Rodney Turner conceded that Diana might have told other friends something very different.
Turner, a car dealer and long-standing friend of Diana's family, said he had told the princess that he opposed her relationship with Fayed. That opposition was based on his opinion of Fayed's father, Mohamed Al Fayed, Turner said.
In a conversation in mid-August 1997, Turner said Diana told him: "It's all over." Turner said that statement "was really a shock to me."
He said Diana added: "Don't fuss, don't fuss. It's all over. I've had a wonderful time."
Later that month, however, she joined Dodi Fayed in southern France on a holiday. They died on August 31, 1997, after their car crashed into a concrete pillar in a highway tunnel in Paris.
Turner supplied BMW cars for Diana's use starting in 1995.
He said she had never expressed any fear that someone might tamper with her car, although others have reported such fears to the inquest.
Steven Davies, who was a chauffeur for Diana starting in 1994, said he could not recall any occasion when he was asked to check a car for signs of tampering.
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Web site: Diana Inquest
In October 1995, Diana told her lawyer, Lord Mishcon, that "reliable sources" whom she did not identify had told her that an attempt to kill or seriously injure her would be made through a car accident, possibly caused by tampering with the brakes, according to a 2006 police report. Diana said she believed that Camilla Parker Bowles, who was to marry Prince Charles in 2005, was also a target of this conspiracy.
Mishcon, who died in 2006, recorded that he found the claim incredible but was surprised to hear that Diana's private secretary, Patrick Jephson, "half believed" it.
Paul Burrell, Diana's butler, said he received a letter from her in October 1996 that said in part: "This particular phase in my life is the most dangerous, my husband is planning an accident in my car, brake failure and serious head injury in order to make the path clear for Charles to marry" another woman who worked as a royal nanny.
Other witnesses have questioned whether that letter is genuine, noting that in October 1996 Diana and Charles had been divorced for two months. Burrell has yet to testify at the inques
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A British citizen who spent two decades on Ohio's death row was released from jail Monday after pleading no contest to three charges related to a fire that killed a 2-year-old girl.
Ken Richey smiles as he tastes freedom.
Ken Richey, who once came within an hour of being executed, walked free for the first time since he was convicted of setting an apartment fire that killed the toddler in 1986.
Prosecutors approved the deal after an appeals court overturned Richey's conviction and death sentence last year.
The deal let Richey, a U.S.-British citizen, go home to Scotland without admitting that he had anything to do with the fire.
Richey pleaded no contest to attempted involuntary manslaughter, child endangering and breaking and entering. His hands were cuffed in front of him during the half-hour hearing in Putnam County Common Pleas Court.
A no-contest plea is not an admission of guilt but a statement that no defense will be offered, leaving the defendant subject to being judged guilty and punished.
As part of the deal, Richey, 43, agreed to exit the country within a day, and plans to leave for Scotland on Tuesday. Prosecutors told him they were worried about threats against Richey, his family and attorney said.
He'll be free, though, to return to the United States, because he's a citizen.
Richey had been set to get out three weeks ago until a trip to the hospital for chest pains delayed his release. He's been in a county jail in Ottawa since then.
Richey was convicted of setting a fire that killed 2-year-old Cynthia Collins and stayed on death row until a federal appeals court determined in August that his lawyers mishandled his case.
The court overturned his conviction and sentence, saying expert testimony could have contended that the fire was an accident and not intentionally set.
Richey was sent to county jail after the decision, and the state was set to try him again in March and seek another death sentence.
Instead, Richey pleaded no contest to the state's charges accusing him of telling the toddler's mother he would baby-sit the girl, but failing to do so and leaving her in harm's way.
Richey's case has generated limited interest in Ohio, but his name is a familiar one in Britain where there is no death penalty. He drew support from members of the British Parliament and the late Pope John Paul II.
Richey plans to spend his first night of freedom playing video games and watching movies -- Superman III, Harry Potter and the Order of the Phoenix, and Transformers -- said his brother, Steve.
He'll leave for Scotland on Tuesday and stay with his mother in Edinburgh. He's said he might live on a farm, travel around Scotland, or maybe open his own nightclub. "I don't know what I'm going to do," he said.
He also wants to write a book and speak out against the death penalty.
"That's something I've got to do," he said. "There's still a lot of innocent people on death row that don't have a voice
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impossibility is a word found only in the dictionary of fools