World oil prices fell today on easing supply concerns, as Hurricane Ophelia was downgraded to a tropical storm and amid signs that world demand growth for energy was slowing, analysts said.
New York's main contract, light sweet crude for delivery in October fell by 83 cents to $63.25 a barrel in early deals. In London, the price of Brent North Sea crude for October delivery slumped $1.13 to $61.75 a barrel.
Analysts said that Ophelia is no longer a major danger' to US oil facilities. Ophelia pales in comparison to Hurricane Katrina, which slammed into the southern Gulf Coast on August 29, wreaking havoc to US oil production.
Prices were falling also after the International Energy Agency said demand strains on the world oil market may be abating. The IEA on Friday said that the total world supply situation in August was 2 million barrels a day above the figure 12 months earlier.
In addition, production by members of the Organisation of Petroleum Exporting Countries had risen by 0.75 million barrels a day on a 12-month comparison.
Analysts said that prices are lower again, 'as market participants focus more on the damage to demand rather than the damage to supply caused by Hurricane Katrina and high prices'.
On August 30, the day after Katrina battered US oil facilities on the Gulf coast, New York's main oil contract hit a record-high $70.85 a barrel, while in London Brent reached an all-time high of $68.89 - leaving prices double the levels in 2003.
However prices fell sharply between last Friday and Wednesday as a number of oil facilities came back on line and after the US and its industrial partners agreed to tap emergency reserves.
