December 14, 2007	Friday	Zilhaj 3, 1428

LONDON, Dec 13: Oil prices tumbled on Thursday, erasing about half of the four-dollar jump seen the previous day as traders revisited concerns over the global economy.

New York’s main contract, light sweet crude for January delivery, slumped $2 to $92.32 per barrel.

Brent North Sea crude for January dropped $1.52 to $92.50.

Prices had jumped more than four dollars Wednesday on the view that a coordinated plan by major central banks to ease the global credit squeeze would support the world economy -- and along with, demand for oil.

The initiative was announced by the central banks of the United States, the eurozone, Britain, Switzerland and Canada.

However, oil prices sank in volatile trade on Thursday as traders feared the plan would not avert an economic slowdown.

“Welcome to a new world of oil price volatility with moves that used to take weeks taking hours,” said Alaron trader Phil Flynn.

“Obviously the volatility is incredible.” Steve Rowles, an analyst with CFC Seymour, added that the market was “somewhat overbought” and fell back on Thursday. New York oil prices had roared to a record high $99.29 on Nov 21 because of concerns over tight energy supplies — but then reversed course to shed about 10 per cent by the start of last week.

Rowles discounted the impact of a weekly US government report on energy stockpiles.

Data published on Wednesday revealed that US crude inventories had last week fallen by 700,000 barrels, roughly in line with consensus forecasts for a drop of 750,000 barrels.—AFP