World oil prices slumped this evening, tracking heavy falls on stock markets and a plunge in the euro's value. US crude dived $3.58 to $73.40 a barrel, while London's Brent crude fell $3.54 to $72.38.
The sharp declines came as European stock markets tumbled on growing concern over debt troubles in some euro zone economies and after a higher than expected jump in US jobless claims. The euro also slid under $1.38 for the first time since June.
Oil prices meanwhile extended losses suffered on Wednesday, which were caused by a surprise jump in oil inventories in the US, the world's biggest energy consumer.
Markets are awaiting Friday's release of key jobs figures from the US which will indicate the strength of economic recovery.
It has been a roller-coaster few days for oil prices after they soared early in the week on growing optimistic about global economic growth in the wake of positive US manufacturing data.
