LONDON : World oil prices dropped close to 111 dollars on Tuesday, dragged down by worries that weaker US oil demand could spread to Europe and Japan, analysts said.
London’s Brent North Sea crude for October delivery dipped 92 cents to 111.02 dollars a barrel in electronic deals.
New York’s main contract, light sweet crude for September delivery, fell 88 cents to 111.99.
Crude futures sank Monday as Tropical Storm Fay looked set to spare energy facilities in the Gulf of Mexico and as the key Baku-Tbilisi-Ceyhan oil pipeline appeared ready to reopen soon.
“There’s a fear in the oil market right now about some of the pretty dramatic news we’ve seen coming out of the United States spreading into Europe and Japan,” said Dave Ernsberger, Asia director of global energy information provider Platts, in Singapore.
Prices have fallen heavily since hitting record highs above 147 dollars per barrel on July 11, but remain well above levels of a year ago. Oil broke through 100 dollars for the first time at the start of 2008.
- AFP
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