Crude plunges below $130 on concerns about demand

New York: Oil prices fell below $130 a barrel on Tuesday on a growing sense that soaring gas and oil prices have cut demand for fuel during the normally busy summer driving season.

Light, sweet crude for July delivery fell as low as $129.10 a barrel on the New York Mercantile Exchange Tuesday, then edged up to trade down $2.34 at $129.85.

Prices peaked at $135.09 a barrel on Thursday. In London, July Brent crude futures fell $2.55 at $129.82 a barrel on the ICE Futures exchange.

Energy Department data showing demand for gasoline over the Memorial Day holiday period won't be released until next week. But, said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, New Jersey, "It definitely was lower than [previous] Memorial Day weekends."