Oil down after record-busting run

Oil prices have fallen, after setting record highs every day last week.

US light crude slid 53 cents to $125.43 a barrel in New York, while London's Brent crude fell 55 cents to $124.85.

Last week, a mixture of strong demand, currency fluctuations, and continuing supply concerns, pushed US light crude to a record of $126.20 in New York.

Oil producers group Opec and analysts have suggested that oil may climb as high as $200 a barrel, a level that could hamper the global economy.

Higher or lower?

Oil prices have jumped 25% since the beginning of the year when they first broke through $100 a barrel.

Since then, trading has been volatile, dominated by geopolitical and economic concerns.

Oil prices have been pushed higher by supply disruption in Iraq, Nigeria and the UK's North Sea, and strong demand from China, which is buying crude to feed its economic boom.

US consumers are also set to use much more petrol during the summer months as driving holidays are popular.

At the same time, concerns about the US economy and a weak US dollar have prompted many investors to move their cash from assets such as stocks and currencies, and into commodities such as oil.

Monday's drop in crude prices comes after some strengthening of the US dollar, and as crude and fuel inventories were seen at stable levels.

Producers cartel Opec, which supplies 40% of the world's oil, has refused to call an early meeting to discuss the current high oil price, insisting supply and demand fundamentals were balanced.

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