LONDON (AFP) — Oil prices tumbled two dollars on Wednesday as traders awaited the latest weekly snapshot of crude inventories in the United States, the world's biggest energy consuming nation.
Brent North Sea crude for December delivery dropped 2.04 dollars to 64.40 dollars a barrel on London's InterContinental Exchange (ICE).
On the New York Mercantile Exchange (NYMEX), light sweet crude for December slid 2.24 dollars to 68.29 dollars a barrel.
The drop in prices came ahead of publication later on Wednesday of key US energy data, a gauge of oil consumption in the United States, also the world's biggest economy.
Oil prices have more than halved in value since reaching record highs above 147 dollars a barrel in July, when fears of supply disruptions had sent them rocketing.
Crude futures have tumbled in recent months as a global economic slowdown dampens demand for energy worldwide.
"Worries over the international economic outlook have not disappeared," said David Moore, a commodity strategist with the Commonwealth Bank of Australia.
Investors were also reacting to the election of Democrat Barack Obama as US President. Experts said Wednesday that Obama's policy calling for reducing US dependence on foreign oil imports would not pose a significant threat to Gulf producers who pump nearly a fifth of global needs.
Obama, the first African-American to win the presidential race, had vowed during his campaigning that within 20 years 85 percent of cars on US roads would no longer be powered by oil or gas-based fuels.
He also eased his initial opposition to proposed legislation to allow offshore drilling in a bid to raise US domestic oil production, thus helping reduce dependence on foreign oil imports and bring down prices.
"There will be no problem for the Gulf countries in the foreseeable future even if Obama succeeds in implementing his policy," said the head of the Saudi Al-Dakkak Economic Studies House, Ali al-Dakkak.
"Whatever the United States does, it will continue to need foreign oil for a very long time," Jeddah-based Dakkak told AFP.
Oil prices had soared six dollars on Tuesday to above 70 dollars a barrel in New York, as the US currency weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.
A weaker dollar makes oil priced in the US unit cheaper for buyers holding stronger currencies, pushing up demand. On Tuesday the euro jumped back above 1.30 dollars in late European deals.
Earlier on Tuesday the price of Brent North Sea crude had sunk close to a 21-month low point under 59 dollars a barrel as traders sold amid weak energy demand worldwide, they added.
Prices had fallen sharply also on market jitters about the outcome of Tuesday's US presidential election, said market watchers.
