Oil prices dropped more than $2 to $112 a barrel this evening on growing concerns about weaker demand in industrialised nations and the stronger dollar.
US crude fell $2.67 to $112.34 a barrel. London Brent lost $2.52 to $111.16.
Crude has fallen sharply since reaching all-time highs above $147 on July 11 as growing global economic problems and high fuel prices cut demand in top consumer the US and Europe.
Oil producer group OPEC also cut its forecast for demand growth this year. 'Due to a major slowdown in transport and industrial fuel consumption not only in North America but also in OECD Europe and Pacific, oil demand growth will be on the decline in 2009 which will make the world oil demand growth the lowest since 2002,' the oil cartel said in its report.
The euro hit a six-month low against the dollar following further proof that the US economic slowdown is spreading. The dollar makes commodities priced in the US currency more expensive.
