LONDON, Sept 25: World oil prices tumbled by about one and a half dollars on Tuesday after their recent record run as US supply concerns eased, analysts said.
New York’s main futures contract, light sweet crude for delivery in November, lost $1.65 to $79.30 per barrel.
In London, the price of Brent North Sea crude for November delivery shed $1.50 to reach $77.41 per barrel.
Last week, New York crude struck a record peak of $84.10 per barrel and Brent struck an historic $79.94.
World crude futures finished lower on Monday and extended losses on Tuesday as more production came on-line in the US Gulf of Mexico after being stopped last week owing to storms.
“This is a reaction to the Gulf of Mexico situation coming back to normal, and to quite how high prices went last week,” Global Insight analyst Simon Wardell said Tuesday.
He added that prices did not deserve to go to record highs last week amid the current supply and demand situation.
Traders are awaiting the latest snapshot on American energy stockpiles from the US Department of Energy on Wednesday.
Crude inventories in the United States had plunged by 3.8 million barrels in the week ending September 14.—AFP
