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Crude oil slump below 112 US dollars

(Xinhua)
Updated: 2008-08-16 00:09

NEW YORK -- Crude oil dropped below 112 US dollars on Friday for the first time since early May as the dollar gained strongly against the euro.

Light, sweet crude for September delivery fell to as low as 111. 34 dollars a barrel, trading down 3.67 dollars, on the New York Mercantile Exchange.

The dollar rose to the strongest level in almost six months against the euro and a seven-month high against the yen. Meanwhile the sterling pound fell versus the dollar on speculation that the Bank of England will have to cut interest rates because of the slowing economy.

The crude futures have lost more than 24 percent since the all- time peak of 147.27 dollars a barrel reached on July 11.