The price of crude oil tumbled further in London trading today in the absence of a severe hurricane threat and on expectations that Iran would not soon face economic sanctions.
The price of Brent North Sea crude for October delivery slid $1.37 to $67.78 a barrel in electronic trade - the first drop below $68 since June 21. Brent had lost $1.10 on Friday
Trading in New York was closed owing to the Labor Day public holiday in the US. New York's main contract, light sweet crude for delivery in October, had ended down $1.07 at $69.15 a barrel on Friday, as markets ruled out the likelihood of immediate sanctions being imposed on major oil producer Iran.
Analysts said that the recent oil price weakness was the result of selling by speculators.
Traders continued to focus on Iran, which last week ignored a UN Security Council deadline to halt its sensitive nuclear energy programme. Analysts believe that Iran, the world's fourth-biggest producer of crude, could be punished with economic sanctions, which in turn could lead to retaliation by the Islamic republic.
The worry is that Iran would disrupt its oil exports, leading to rocketing oil prices.
The European Union foreign policy chief Javier Solana had warned on Friday against making concrete moves on sanctions against Iran while he holds talks with Tehran's chief nuclear negotiator.
The US accuses Tehran of using a nuclear energy programme as cover for a drive to make atomic weapons, and has expressed confidence that the UN Security Council can agree economic sanctions in September.
Iran denies the US charges and argues that its nuclear programme is purely to provide civilian nuclear energy.
