Friday, August 18 2006 10:33 Hrs (IST) - World Time -

London: Crude oil prices yesterday (Aug 17, 2006) plunged to levels last seen at the end of June, amid signs of an economic slowdown in the United States and receding tensions in the Middle East.

New York's main contract, light sweet crude for delivery in September, fell as low as 70.66 dollars per barrel the lowest point since 26 June in electronic deals before the official opening of the US market.

The contract later stood at 70.79 dollars, marking a large fall of 1.10 dollars from yesterday's close.

In London today, Brent North Sea crude for October delivery fell as low as 71.52, which was last seen on June 28. It later stood at 71.70 dollars, which was 1.13 dollars less than the previous day's finish.

Crude futures have shed around four dollars over the course of the week.

Prices began falling on Monday after a ceasefire deal began between Israel and Hezbollah after one month of violence, which alleviated concerns of a wider conflict in the Middle East.

"Losses increased after a series of US economic releases confirmed a slowdown in the American economy, which dampened prospects for crude demand because the United States is the biggest consumer of energy in the world," dealers said.