Oil futures drop despite Iraq sabotage

WASHINGTON - Oil futures dropped by almost $1 a barrel Monday despite more sabotage of Iraqi oil infrastructure, reinforcing the view among traders that prices had risen too fast earlier this summer.

Light sweet crude for October delivery plunged by 90 cents to $42.28 on the New York Mercantile Exchange. Crude futures are at their lowest level since July 27 and roughly 14 percent below the record settlement high of $48.70 Aug. 19. When adjusted for inflation, oil prices are about half the price reached in 1981 after the Iranian revolution.

Consumers boosted spending for July

WASHINGTON - Shoppers spent more freely in July, raising hopes that June's economic lull would not last.

The Commerce Department reported Monday that consumers boosted spending by 0.8 percent in July from the previous month. Their appetite to spend was led by a rebound in demand for big-ticket goods, such as cars, helped by buyers' incentives.

Steelworkers to rally at Cognis Corp. office

Members of Local 14340, United Steelworkers of America, will have a rally today starting about 4 p.m. outside Cognis Corp.'s corporate offices in Winton Place. The union, which represents about 300 hourly employees at the specialty chemical maker, will distribute leaflets to salaried employees explaining the union's position on overtime. The union is working under a one-year contract extension after refusing Cognis' effort to limit overtime pay last winter.

Twain helps promote new P&G product

Procter & Gamble is using country music diva Shania Twain to promote its new product Febreze Scentstories. Twain's song "Forever and For Always" is being featured in the Scentstories television ads that were launched Monday.

Scentstories is a plug-in disc player with "scent-themed discs" that rotate through five scents, a new one every 30 minutes. Scentstories brand manager John Sebastian said the company would unveil other musical components for the marketing campaign this year.

Wire/staff reports