Oil prices fell heavily this evening as traders reacted to a stronger US dollar. Oil prices had gained earlier after energy giant Royal Dutch Shell suspended some of its crude deliveries from Nigeria following attacks on a pipeline.
OPEC President Chakib Khelil described crude prices above $120 a barrel as 'abnormal', adding that they could fall to $78 should the US currency strengthen and tensions ease over Iran's nuclear programme.
Brent North Sea crude fell $3.20 to $122.64, while US crude slumped $2.98 to $121.75. The dollar had strengthened after better than expected US consumer confidence figures for July.
A strong US currency dents demand for dollar-priced goods because they become more expensive for buyers holding weaker currencies.
