Oil prices fall by more than $5

Oil prices have fallen almost $10 in two days

The impact of a global economic slowdown on demand for oil has caused prices to fall by more than $5, with London seeing the largest drop.

Crude oil prices fell to about $136 a barrel, well down on the record price of almost $147 set in London last week.

Leaders at the G8 meeting also called for suppliers to boost production.

The fall in the oil price helped to boost share prices in New York where the Dow Jones index closed more than 150 points, or 1.3% higher.

US light, sweet crude fell $5.33 to end the trading session at $136.04 a barrel.

In London, Brent crude fell slightly more - $5.44 - to $136.43 a barrel.

According to one oil analyst, prices fell sharply "amid concerns over the general health of global economies."

Sucden analyst Nimit Khamar said: "Many economies face a bleak economic outlook which could reduce the demand for oil, especially at current prices."

Traders were also relieved that, according to forecasts, Hurricane Bertha had weakened and was likely to miss US offshore oil platforms this week.