Crude oil prices tumbled to 2-month lows on Monday due to the U.S. ample fuel stocks. US crude futures plunged near US$45 a barrel before paring losses in late trade.
Suspended Nigerian oil workers strike planned for Tuesday and Iran's decision to halt uranium enrichment also calmed down traders over probable threats to international oil supplies.
US light crude lost $2.07, or 4 per cent, to settle at $45.25 a barrel, the lowest price since mid-September and down over $10 from late October's record high of $55.67.
London Brent crude futures dropped $1.97 to $40.34 a barrel.
Supplies have risen 22 million barrels, or 8 per cent, in the past seven weeks, thanks in part to the highest Opec production in decades. Analysts expect US distillate stocks, including heating oil, to have risen by 900,000 barrels last week due to refineries cranking up production after the end of the traditional maintenance shutdown season.
