Oil fell below $72 a barrel today, extending the previous session's near 5% plunge sparked by concern about the US economy and falling equity markets.
The US sub-prime, or risky, mortgage crisis has rattled credit and stock markets and is spilling over into commodities, analysts say. Some investors say oil may head lower still in the near term.
US crude fell 36 cents to $71.70 this afternoon and in London Brent crude lost 5 cents to $71.12.
Oil has fallen 9% from a record high of $78.77 reached on August 1, pressured in part by weak US economic data. Yesterday's drop was the biggest percentage loss since January 4.
Shares in airlines moved higher amid the weaker oil prices with British Airways in London closing up 4% and Aer Lingus shares in Dublin up 2.5% this evening.
