Oil prices dived below $63 a barrel this evening, hitting the lowest points since May, on concerns about energy demand in the struggling global economy.
Brent North Sea crude sank $1.10 to $62.95, after earlier touching a low of $62.73. US crude tumbled $1.36 to $62.69, having earlier struck $62.46.
Prices had rebounded slightly earlier in the day - but the gains were wiped out in afternoon trade amid fresh losses on Wall Street.
Oil had hit 10-week lows on Monday after recent US data showed job losses surged more than expected to 467,000 in June, raising fresh doubts about the pace of recovery in the US, the world's biggest energy user.
Investors are also monitoring the situation in Nigeria where militants have continued to carry out attacks on oil installations and kidnapped oil workers in the country's crude-producing Niger Delta region.
