Oil prices slipped below $71 today, as worries over threats to economic growth from a deepening credit squeeze in global financial markets outweighed forecasts for robust oil demand.
US crude fell 61 cents to $70.98 a barrel, taking losses from last week's record high of $78.77 to more than 9%. London Brent crude fell 37 cents to $69.84.
Meanwhile the outlook for demand appeared robust, providing a floor to oil prices.
The adviser to 26 industrialised countries - the International Energy Agency - said today world oil demand will grow at a faster pace in 2008 than this year and repeated its call for more OPEC oil.
Analysts said oil prices would also find support from OPEC's reluctance to increase output at its September meeting, fuelling concerns of a supply squeeze in the fourth quarter ahead of peak winter fuel demand.
OPEC's biggest member Saudi Arabia told customers in Japan and Europe yesterday that it would keep oil supply levels unchanged in September.
