Oil falls to three-month low of US$118

harga minyak dah turun ni...bila harga petrol kat msia nak turun plak..aritu naik cepat jee huhuhu

By Alex Lawler

LONDON: Oil fell to US$118 (RM389.40) a barrel on Aug 5, a three-month low, as investors focused on rising Opec supply and declining demand in the United States and Europe.

The loss extends a slide from the July 11 record high of US$147.27 a barrel and comes despite a storm in the Gulf of Mexico that is curbing oil output and tension over Iran's nuclear programme.

US crude was down US$2.70 at US$118.71 a barrel by 0852 GMT and fell as far as US$118.00, the lowest price since May 5. London Brent crude shed US$2.82 to US$117.86.

Tropical Storm Edouard, the fifth tropical storm of the 2008 Atlantic hurricane season, has curbed oil production, shipping and refining. But traders were discounting the risk of wider disruption to oil facilities.

"It seems that the market is losing interest in geopolitical and weather-induced 'props', and instead is becoming more aware of growing supply/demand imbalances," said Edward Meir, analyst at MF Global, in a report.

Monday's losses came after Reuters survey showed Opec oil supply rose for a third consecutive month in July mainly because of increased output from the world's top exporter Saudi Arabia.

The boost in production from Opec, source of two in every five barrels, coincides with soaring energy prices and an economic slowdown that has eroded consumption in the United States and Europe.

Reuters