In New York, the price has dropped by four cents on Friday’s closing price to US$61.80 per barrel.
Prices in Europe fell more sharply.
In London, the price of crude for November delivery plunged US$1.05 dollars to close at US$58.16 dollars per barrel.
It had earlier slumped to US$57.82 which is the lowest level since July 28.
“The world right now is awash with crude supply,” said Jason Schenker, analyst at Wachovia Securities.
Prices had initially risen on Monday, owing to a technical bounce after
heavy falls last week, analysts said.
World oil prices had sunk to their lowest points for more than two months last week.
The drop followed evidence that the high cost of energy had curtailed gasoline demand in the United States, the world’s biggest consumer.
“Several refineries, closed by Hurricanes Rita and Katrina, have also
re-started and several more are due to reopen shortly,” noted Sucden analyst Sam Tilley.
Little impact in Australia
The Australian Automobile Association predicts there will be little impact on petrol prices across Australia.
Executive director, Lauchlan McIntosh, said there may be some falls in capital cities but little impact on regional and rural areas.
“It’s quite alarming that regional Australia is paying the price as price gouging continues,” said Mr McIntosh.
Price gouging is the practice of maintaining artificially high prices despite drops in world oil prices.
Mr McIntosh cited falls of up to 14 cents in Sydney over the past month but he said regional areas such as Goulburn did not enjoy the same reductions.
He told SBS online that local domestic margins remain far too high in the face of current prices, and has again called on politicians, industry and the media to review why they are being maintained at punishing levels.