World oil prices hit one-month lows today as traders reacted to an uncertain outlook for energy demand in a fragile economic recovery.
Prices hit $71.06 a barrel in London and $71.34 in New York - the lowest levels since June 7.
New York's main contract, light sweet crude for August delivery, later stood at $71.46 a barrel, down 68 cents compared with Friday's close.
Brent North Sea crude, also for August, was down 46 cents at $71.19.
Oil prices tumbled by more than 8% last week as weak US economic data sparked fears about the strength of the global recovery.
The US economy shed 125,000 jobs in June, official data showed. Most analysts had expected a loss of 100,000 jobs.
Barclays Capital, a bank which has long predicted higher oil prices, lowered its crude price forecasts for this year and next due to persistent weak economic indicators, although its forecasts remain well above current prices.
A weather system located between Jamaica and Honduras in the Caribbean Sea has a 30% chance of developing over the next two days into a tropical cyclone, a category that includes tropical storms and hurricanes, the US National Hurricane Center said late yesterday.
The system's location and expected course are similar to those that Hurricane Alex followed during its formation stage in late June, before moving into the Gulf of Mexico, forcing Mexican oil terminals to shut down and US producers to curb output.
Gulf of Mexico oil operations continued to restart on Friday after being shut as a precaution before Hurricane Alex hit Mexico last week.
