LONDON, July 8: Oil prices nosedived by almost $5 on Tuesday as falling global equities and resurgent concerns about an economic slowdown stoked fears about future energy demand, traders said.

The oil market, which hit record heights close to $147 a barrel last week, also sank after the Group of Eight (G8) rich nations warned on soaring crude costs and appealed for more production, they added.

Brent North Sea oil for August delivery plunged $4.88 to $136.99 a barrel.

New York’s main oil contract, light sweet crude for August delivery, tumbled by $4.95 to $136.41.

Crude prices fell heavily “amid concerns over the general health of global economies following a sharp sell off in equities,” said Sucden analyst Nimit Khamar.

“Many economies face a bleak economic outlook which could reduce the demand for oil, especially at current prices.”

In Japan on Tuesday, eight of the world’s most powerful leaders called for efforts to cool sizzling oil prices, warning soaring fuel and food costs were a threat to world economic growth.

“It seems to me like oil traders are looking with some interest at the headlines coming out of the G8 meeting,” said Dave Ernsberger, Asia director of global energy information provider Platts in Singapore.

The London Brent contract hit an all-time peak of $146.69 and New York crude struck a record high of $145.85 last Thursday.

Oil slumped on Monday, losing almost $4 in New York, on the back of easing geopolitical tensions over Iran’s nuclear programme and a strengthening US dollar.

However, jitters about key crude producer Iran returned on Tuesday.—AFP