OIL dropped for a second day in New York as US equities declined on a decrease in JPMorgan Chase & Co’s earnings and crude supplies increased more than forecast.

Oil prices fell for a third straight day today amid worries that the global economy is heading for recession, which could cut demand for crude.

CRUDE oil in New York rose to its highest close this year after Nigeria, Africa’s biggest oil producer, said it will comply with OPEC production cuts.

Oil prices were hovering around record highs today amid international tensions over Iran’s nuclear programme and disruptions to supply in Nigeria.

CRUDE oil rose for the third time in four sessions as war in Iraq and civil strife in Nigeria limit shipments from the countries, which normally produce about 6% of the world’s oil.