Oil prices fell further on Friday on the prospect of reduced energy demand because Europe’s main economies are shrinking, dealers said.
London’s Brent North Sea crude for October delivery dropped $1,40 to $112,28 a barrel.
New York’s main contract, light sweet crude for September delivery, shed $1,39 to $113,62 a barrel in electronic deals.
Crude futures had fallen on Thursday after official showed that the 15-nation eurozone economy shrank 0,2% in the second quarter, the first contraction since the creation of the single European currency in 1999.
Dealers said that fears of supply disruption had receded after Russia and Georgia agreed to a French-brokered peace plan following several days of hostilities.
British energy giant BP, meanwhile, said on Thursday that it had resumed pumping gas through the South Caucasus pipeline that transits Georgia, but that the Baku-Supsa oil link remained shut. — AFP