LONDON, Oct 8: The price of New York crude oil slumped by $2 on Monday as traders fretted that slowing US economic growth would hamper long-term global crude demand.

In London, the price of Brent North Sea crude for November delivery tumbled $1.50 to $76.92 per barrel.

New York’s main futures contract, light sweet crude for delivery in November, dived $2 to $79.22 per barrel.

Last week, the market drifted lower but was underscored by global supply concerns that have pushed crude futures to record heights in recent weeks.

“Crude futures were lower on Monday, extending their losses from Friday, on persistent concerns over a possible slow down in the US economy and uncertainty about outcomes from the latest credit crunch,” said Sucden analyst Michael Davies.

He added: “Overall, many fear that an economic slow down in the US could dent demand for energy.”

Added to the mix, the International Energy Agency (IEA) was reported as saying that US economic woes could yet dent global demand, and that high oil prices could negatively impact on Asian economies.

Fimat analyst John Kilduff said the comments from the Paris-based IEA were weighing on the oil market.

Crude oil prices also suffered from a modest rebound in the US currency on Monday.

“The dollar has been moving higher in the early going so energy markets have come under pressure,” added Kilduff.

A stronger US currency makes dollar-denominated commodities, such as crude oil and gold, more expensive for buyers using weaker currencies.

But in recent weeks, the euro has hit a series of record peaks against the US dollar, providing a boost to oil prices.

New York oil prices burst through the $80-level for the first time last month and went on to hit an all-time peak of $84.10.

Brent oil hit a record high of $81.05 per barrel in late September.

Analysts said the dwindling value of the dollar helped push oil prices to all-time record levels in September — but there was a good chance the dollar-led rally was overdone.

Peter Beutel, an analyst at Cameron Hanover, said the fact that oil dropped only marginally last week from its previous highs shows there remain many supportive elements in the market. —AFP