UNDATED (AP) Tropical Storm Gustav is seen as a possible threat to the Gulf Coast and that's prompting traders to send crude prices higher.

The National Hurricane Center says the storm could head toward the coast as a Category 3 hurricane early next week.

Light, sweet crude for October delivery was up more than $2 to above $118 a barrel on the New York Mercantile Exchange.

A powerful storm in the Gulf could force shutdowns on the offshore rigs that account for about a quarter of U.S. crude production and much natural gas.

At the pump, auto club AAA says the average price of unleaded regular gas has dipped below $3.67 a gallon.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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