Oil prices slump to new annual low

Oil is hitting new annual lows for the third straight day with the economic crisis in Europe pushing Goldman Sachs to trim a once bullish outlook for energy demand.

Sachs, which had predicted sharp increases in oil prices this year, cut forecasts for benchmark and Brent crudes on Tuesday.

The investment bank says energy demand growth will slow down as Europe’s debt crisis raises the spectre of a second recession.

Benchmark crude dropped for the third day, giving up 1.73 to 75.88 a barrel in New York. Brent crude fell below 100 per barrel for the first time since August. It lost 1.97 to 99.74 in London.

Meanwhile, petrol prices dropped nearly a penny overnight to a new national average of 3.408 per gallon.