LONDON, Aug 5: Oil prices fell another 2.0 dollars on Tuesday to beneath 119 dollars a barrel, as slowing US demand for energy offset tensions over crude-rich Iran, traders said.

The market also slid as Tropical Storm Edouard was set to cause minimal damage to energy installations in the Gulf of Mexico, analysts said. Brent North Sea crude for September delivery dropped 2.50 dollars a barrel to 118.18 dollars in electronic trading.

New York’s main contract, light sweet crude for September shed two dollars to 119.41 dollars a barrel. Crude futures were falling “with concerns over slowing demand for energy still dominating investor sentiment,” said Andrey Kryuchenkov at the Sucden brokerage in London.

On Monday, Brent oil had fallen below 119 dollars for the first time since early May after US economic indicators had emphasised weakness in the world’s biggest economy, dealers said.

The monthly US Commerce Department survey showed consumer spending, which accounts for two-thirds of economic output, had cooled in June while inflationary pressures accelerated.

The United States is the world’s biggest user of energy and any signs of slowing consumer spending tend to weigh on global oil demand projections.

—AFP