LONDON, Aug 11: Oil prices sank on Monday, erasing earlier gains on global demand fears, as traders set aside worries that fighting between Georgia and Russia would disrupt global energy supplies.

Brent North Sea crude for September delivery sank 1.89 dollars to 111.44 dollars per barrel, after touching a low of 111.07.

New York’s main contract, light sweet crude for September delivery, sank 2.0 dollars to 112.83 dollars a barrel. The contract had earlier swung as low as 112.83 -- the lowest point since May 1.

Earlier on Monday, oil prices had bounced close to 117 dollars per barrel as violence halted oil exports through Georgian ports at the weekend. New York crude touched an intra-day peak of 116.90.

“Oil prices ... climbed above 116 dollars per barrel this morning as the conflict between Russia and Georgia heightened concerns of energy exports disruption from the Caspian region,” Barclays Capital analysts said.

“Shipments of oil and oil products from two of Georgia’s ports, Batumi and Kulevi, have been suspended as well.” The head of Azerbaijan’s state oil company had said on Saturday that exports had been halted via two Georgian ports owing to the fighting.

Meanwhile, a fire at the BTC pipeline in eastern Turkey, sparked by a blast last week, was extinguished on Monday, officials told Anatolia news agency.

Separatist Kurdish rebels claimed responsibility for the blast, which ripped through a section of the pipeline in Erzincan province late on Aug 5, causing fresh jitters at the world oil markets.—AFP