LONDON, Oct 10: World oil prices slumped on Monday on reports that there are sufficient supplies of crude as well as the return to action of US refineries and a fall in US demand for gasoline (petrol), analysts said.

New York’s main contract, light sweet crude for delivery in November, dropped 79 cents to $61.05 per barrel in afternoon deals, having fallen to as low as 60.90.

In London, the price of Brent North Sea crude for November delivery plunged $1.05 to $58.16 per barrel, having fallen to 57.82 dollars — the lowest level since July 28.

“The world right now is awash with crude supply,” said Jason Schenker, analyst at Wachovia Securities.

Prices had initially risen on Monday, owing to a technical bounce after heavy falls last week, analysts said.

World oil prices had sunk to their lowest points for more than two months last week on evidence that the high cost of energy had curtailed gasoline demand in the US, the world’s biggest consumer of energy.—AFP