Oil prices have tumbled to their lowest levels for six months, with the price of Brent crude dropping below $97 a barrel at one point this afternoon.
Traders said a stronger US dollar and the likelihood of a sharp global economic slowdown were affecting prices.
Prices had risen earlier in the day as Hurricane Ike headed toward key energy facilities on the southern US coast and after OPEC yesterday reduced output to curb falling prices.
Having fallen as low as $96.99, Brent was trading at $97.30, down $1.67, later this afternoon. US crude slid $1.96 to $100.62.
A strong dollar makes goods, such as oil, priced in the US currency more expensive for foreign buyers, dampening demand. Meanwhile, concerns about oil use in a slowing global economy were highlighted by the latest monthly report from the International Energy Agency (IEA), which cut its estimate for demand growth this year by 100,000 barrels per day.
