Oil prices fell this evening, after rallying to the highest levels in more than five months due mainly to rebounding stock markets.
Brent North Sea crude dropped 54 cents to $54.04 a barrel, a day after hitting the highest points since last November. US crude dropped 66 cents to $53.81 a barrel, after earlier hitting $54.83 - the highest level since November 18.
World oil prices have slumped since striking record highs above $147 in July 2008, with a global economic downturn sharply denting demand.
While prices have bounced back in recent weeks on early signs the worst may be over for the US economy, analysts have cautioned that the current global swine flu outbreak could set back any recovery.
But recent data showing that manufacturing in China expanded for the first time in nine months in April should be supportive of oil prices as it means higher demand from the world's most populous nation, analysts said.
