Oil prices fell further this evening from Monday's record highs of almost $140 a barrel. US crude slipped 43 cents to $134.41, while Brent North Sea crude fell 94 cents to $133.72.
Both had struck record highs on Monday as fresh supply worries overshadowed news that Saudi Arabia was ready to raise output to help cool high energy costs that threaten global economic growth.
Iran said today it would be opposed to any move by the Saudis to raise its oil output without a consensus from fellow members of the OPEC cartel.
In addition, Iranian President Mahmoud Ahmadinejad blamed soaring prices on the sliding US dollar, which makes commodities priced in the dollar cheaper for foreign buyers and so tends to stimulate demand.
OPEC, which pumps about 40% of oil supplies and has been widely blamed for the five-fold rise in prices since 2003, insists that the oil market is well supplied.
