LONDON, Aug 28: Oil prices slid on Tuesday as falling world stock markets revived fears that slower economic growth could dampen demand for crude, traders said.

The price of Brent North Sea crude for October delivery shed 50 cents to $70.45 per barrel.

New York’s main futures contract, light sweet crude for delivery in October, lost 50 cents to $71.78 per barrel.

Crude futures had risen earlier on Tuesday on concerns about tight supplies in the United States, which is the world’s biggest consumer of energy.

However, European and US stock markets tumbled in late afternoon trade on Tuesday, stoking fears over the strength of global crude demand going forward.

Wall Street shares fell sharply after a monthly survey showed US consumer confidence -- a key gauge of economic well-being -- fell amid a deepening housing market crisis.

In recent weeks, nervousness in wider financial markets over the weak United States housing market led traders to sell their oil investments, which are deemed to carry greater risk, in a bid to cover their losses elsewhere.

Despite Tuesday’s modest losses, CMC markets trader Nas Nijjar said there was still strong support at $70 per barrel.

Traders are on edge about the US Department of Energy’s (DoE) weekly crude inventories report which is due for publication on Wednesday.—AFP