August 18, 2006	Friday	Rajab 22, 1427

LONDON, Aug 17: Crude oil prices on Thursday plunged to levels last seen in June, amid signs of an economic slowdown in the United States and receding tensions in the Middle East, dealers said.

New York’s main contract, light sweet crude for delivery in September, fell as low as $70 per barrel -- the lowest point since 21 June. The contract later stood at $70.20 in pit trading, marking a large fall of $1.69 from Wednesday's close.

In London on Thursday, Brent North Sea crude for October delivery fell as low as $71.33, which was last seen on June 28. It later stood at $71.39 in electronic deals, which was $1.44 less than the previous day’s finish. Crude futures have shed around $4 over the course of the week.

Losses increased after a series of US economic releases confirmed a slowdown in the American economy, which dampened prospects for crude demand because the United States is the biggest consumer of energy in the world, dealers said.

The Opec cut its forecast for world oil demand by 80,000 barrels per day on Wednesday, saying demand would average 84.5 million bpd in 2006.

“We are seeing the first signs of a slowdown” in the US economy, one London-based trader told AFP, adding that the end of the so-called driving season was also in sight.—AFP