LONDON, Aug 4: Crude oil prices plunged below $120 a barrel on Monday for the first time in three months.

Prices slumped by more than $5 a barrel in London and New York trading as Tropical Storm Edouard had yet to threaten oil installations in the Gulf of Mexico.

The price of Brent North Sea crude oil hit as low as E118.80 a barrel in electronic deals.

New York’s light sweet crude slid to an intra-day trough of $119.50, as a government survey revealed that US consumer spending had cooled in June and inflationary pressures accelerated as higher food and energy costs stretched Americans’ wallets.

The weak US economy is already causing a drop in demand for energy in the United States, the world’s biggest consumer of energy.

Later on Monday, Brent North Sea crude for September delivery stood at $119.48 a barrel, down $4.70 from Friday’s close.

New York’s main contract, light sweet crude for September, was at $119.77 a barrel, a loss of $5.33.—AFP