Oil fell in price to its lowest level in nearly three months on Tuesday on mounting evidence that high prices and a souring economy are cutting into world energy demand.
Analysts said the drop coincided with a firmer US dollar.
US crude dropped $US3.11 to $US121.62 a barrel by 1700 GMT on Tuesday after dipping as low as $120.42 - its lowest since May 6. Brent crude fell $US3.47 to $US122.37.
Oil reached a record price of $US147.27 on 11 July.
