The price of oil fell sharply this evening, hitting the lowest level in over seven months due to a strong dollar and concern about the impact of the euro zone crisis on energy demand, traders said.
Official data revealing falls in US energy stockpiles lent a small amount of support.
New York's main contract, light sweet crude for delivery in June, plunged to $67.90 a barrel - the lowest level since September 30, 2009. It later recovered to $68.63, down 78 cents from yesterday's closing price. London's Brent North Sea crude for July sank $1.29 to $73.14.
Stock markets slumped globally today and the euro at one stage dropped to a four-year low, hit by unexpected German trading controls and stubborn euro zone debt concerns.
A stronger US currency makes dollar-priced oil more expensive for holders of weaker currency units, denting demand and pushing prices lower.
Meanwhile, oil producer Libya today expressed concern about the slump in prices but said there was no need for an extraordinary meeting of OPEC to discuss the situation or make changes to the cartel's official output target.
Member countries of the Organisation of Petroleum Exporting Countries - which pumps about 40% of the world's oil - have publicly expressed a desire for crude prices to stay above $70 a barrel.
