Oil has dropped in price to a three-month low as crude inventories rise in the United States.
US light crude fell 59 cents to settle at $US118.58 - $US30 below the record price of $US147.27 a barrel reached on 11 July. London Brent crude fell 70 cents to $US117 a barrel.
Crude oil stocks rose by 1.7 million barrels in the week to 1 August according to data from the US Energy Information Administration.
Stocks of distillate fuels, including heating oil and diesel, rose by 2.8 million barrels. Gasoline inventories fell by 4.4 million barrels against forecasts of a 1.2 million barrels drop.
US energy stockpiles have been climbing in recent weeks amid mounting evidence that surging pump prices and an economic slowdown are hitting fuel consumption.