LONDON, Sept 14: World oil prices dropped to their lowest levels for almost six months on Thursday on easing supply concerns and news that Nigeria's two oil unions had suspended a strike a day after it was launched.

Traders said prices were also pressured by heavy falls in natural gas futures caused by official US data that revealed higher-than-expected US stockpiles of winter fuel.

New York's main contract, light sweet crude for delivery in October, fell 24 cents to $63.73 per barrel in pit trading. Earlier it struck $63.47--the lowest point since March 27.

In London, Brent North Sea crude for October delivery shed 48 cents to $62.51 per barrel in electronic trading and before the October contract expires at Thursday's close. Earlier on Thursday Brent hit $62.35--the lowest point since March 23.

“On the whole the market is trying to find out where the floor is,” Global Insight analyst Simon Wardell said, referring to the level at which prices will stop falling.

Markets also reacted to news that the National Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association had called off their strike in Nigeria, Africa's biggest crude producer.

Despite the latest falls in oil prices, the IMF said on Thursday that strong US and Chinese economies as well as an array of supply issues look set to keep oil prices high next year, with markets pointing to a price of $70-75 a barrel.

The IMF warned that a further escalation in oil prices beyond that level cannot be ruled out in the event of deteriorating tensions involving Nigeria, Iran or other key crude suppliers.

“Oil price increases over the past eight months have reflected buoyant global activity, which has tempered the response of oil demand to higher prices, and supply concerns related to geopolitical uncertainties,” the IMF said in its semi-annual World Economic Outlook report.—AFP