Oil prices slide back below $80

Oil prices retreated below the $80-a-barrel mark in London on Tuesday as investors looked ahead to Wednesday's US inventory report.

Profit taking and investor caution has seen the price of US light sweet crude fall back from the $83.90 high, seen on 20 September.

After dropping $1.42 on Monday, it fell another 78 cents to $79.46, while Brent crude dipped 85 cents to $76.79.

Analysts say the inventory report will be important for short-term prices.

The dip comes despite the US dollar hitting a string of record lows against the euro and other currencies.

This makes oil - and other commodities priced in dollars - cheaper for customers with non-dollar funds.

Indications that the Gulf of Mexico has seen the worst of the hurricane season has also prompted some profit taking, analysts say, with calmer weather likely to reduce concerns over supply, and lead to lower prices.