LONDON, Oct 2: World oil prices tumbled by more than a dollar on Tuesday as traders feared that slower US economic growth could dent future crude demand.

Prices had hit record highs at the end of September — with New York crude striking $84 — but they have since been pushed lower by concern about the US economy and by easing weather concerns in the US Gulf of Mexico, where many energy facilities are based.

The price of London’s Brent North Sea crude for November delivery dived $1.24 to $76.40 per barrel.

New York’s main futures contract, light sweet crude for delivery in November, shed $1.03 to $79.21 per barrel.

“Crude futures were still lower on Tuesday, deepening last night’s losses amid profit-taking on lingering concerns over a slowdown in the US economy, which could dent growth and eventually demand for energy,” said Andrey Kryuchenkov, analyst at the Sucden brokerage.

Recent US home sales and consumer confidence figures have raised concerns about the prospects for the US economy, which has been hit by the so called subprime housing crisis.

The United States is the world’s biggest energy consumer and slower economic growth would crimp its appetite for crude oil.

“There’s no new major news in the market but it looks like we’re seeing a bit of a correction, helped by the waning of the storm threat,” said GFT Global Markets analyst Mark Outten of Tuesday’s price falls.

“In the long-term we still don’t think oil has hit its peak, but for now it’s coming down.”

London Brent oil had surged to a record high $81.05 per barrel last Friday due to concerns over global oil supplies. New York’s oil price hit a record $84.10 in September.

The recent record-breaking run was stoked by tight US energy supplies and jitters over the ongoing Atlantic hurricane season that draws to a close next month.

On Wednesday traders will absorb the traditional weekly oil inventories report from the US Department of Energy.—AFP