Oil prices tumbled this evening, part of a wider sell-off across commodities markets due to mounting worries about the world economy, interest rates and demand.
US crude fell $7.55 to $101.72, the lowest level since March 10. US oil has dropped more than $10 per barrel, almost 10%, since hitting new two-year highs on Monday. Brent crude fell $6.94 to $114.25 in London.
Surveys released this week show that Americans are buying less petrol as pump prices rise. Investors are increasingly concerned about the impact of higher fuel prices on the American and other large economies.
Oil prices started falling early in the day, continuing Wednesday's slide, following the Energy Information Administration's report that US oil supplies increased twice as much as expected last week. Weak US employment figures added to concerns about the economic outlook.
The US dollar also jumped against other major currencies like the euro after the European Central Bank's president declined to signal that interest rates would rise again next month. Oil, which is traded in dollars, tends to fall as the dollar rises and makes crude barrels more expensive for investors holding other currencies.
