LONDON, June 13: Crude oil prices tumbled on Friday at the end of a volatile week during which the market reacted to supply and demand news and movements of the dollar.

New York’s main oil futures contract, light sweet crude for July delivery, shed $3 to $133.74 per barrel during European office hours.

New York crude had struck a historic high point of $139.12 one week ago, when it surged a record-breaking $10.75 in one day’s trade.

“We are still leaving open the likelihood of fresh record highs next week, a development that would confirm this week’s trade as merely a consolidation phase within last Friday’s huge trading range,” said Jim Ritterbusch, president at trading advisory firm Ritterbusch and Associates.

On Friday, Brent North Sea crude for July delivery fell $2.34 to $133.75, after hitting a peak of $138.12 a week ago.

Crude futures have been volatile this week, gaining five dollars on Wednesday, then slumping by the same amount early Thursday, before ending the day slightly higher.

Prices had weakened early on Thursday as the dollar rallied against rival currencies, traders said. A stronger US unit tends to dampen demand for crude because it becomes more expensive for foreign buyers.

The New York oil contract had however rocketed by $5.07 to a close of $136.38 on Wednesday after publication of a US energy inventory report.

Wednesday’s surge in prices came after the US government said American crude stockpiles declined by 4.6 million barrels in the week ending June 6.

That was far heavier than market expectations for a drop of 1.5 million barrels and marked the fourth straight weekly fall.

Opec on Friday cut its 2008 estimate of growth in world oil demand, as high prices and slower economic growth brake demand in major industrialised countries and the United States in particular.

Global oil demand was now projected to grow by 1.28 percent in 2008, compared with the previous estimate of 1.35 percent, the Organisation of Petroleum Exporting Countries said in its June monthly report.

Finance ministers from the Group of Eight richest nations were meanwhile to discuss ways to limit the economic damage of high oil prices at a meeting that began in Japan on Friday.—AFP