Oil prices slid more than $1 to trade well below $53 a barrel today to extend the previous day's heavy losses as funds took profits from a 12 per cent gain in the past month.
A big stock build in the United States encouraged selling, although losses were limited by a weaker dollar and longer-term worries that energy demand growth this year would outpace supply.
US light crude fell $1 cents or 1.9 per cent to $52.56 a barrel in early European trade, having earlier touched $52.50, the lowest price since March 2nd. Oil tumbled $1.23 yesterday, the first decline after a six-day rally.
Strong global demand and a late-winter cold snap helped send oil prices soaring this week to a four-month high of $55.65 a barrel, 2 cents shy of October's all-time peak.
But OPEC oil producers are keeping a close watch over rising stocks in developed countries ahead of the usual second-quarter slowdown, when temperatures warm up.
Iran, Qatar, Venezuela and Algeria have come out in favour of keeping production steady.