World oil prices slumped today to their lowest levels since May 2005 owing to healthy US energy stockpiles and warm weather in the northern hemisphere.
New York's main contract tumbled $2.14 to close at $51.88, and in late trade, London's Brent North Sea crude was down $1.69 at $52.
In other news, it was announced today that oil was again flowing through the main pipeline from Russia to Europe after Moscow and Belarus agreed to settle a dispute that has hurt Russia's reputation as an energy supplier.
Supplies to several EU countries were halted on Monday when Russia refused to pay a new transit tax imposed by neighbouring Belarus.
And adding to the positive sentiment, the US Department of Energy said yesterday that stockpiles of distillates and petrol rose sharply last week, offsetting a bigger-than-expected drop in crude oil inventories.
Oil prices have now shed about 14% in value since the start of 2007, sparking speculation that the Organisation of Petroleum Exporting Countries (OPEC) could soon hold an emergency production meeting.
