Oil prices extend losses

London - Oil prices fell further on Tuesday, weighed down by abundant supplies of crude according to analysts.

Brent North Sea crude for delivery November dropped 60 cents to stand at $92.19 a barrel around midday in London.

US benchmark West Texas Intermediate for November shed 45c to $89.89 a barrel.

Brent had on Monday fallen to a 28-month low point at $91.25 a barrel before winning back some ground thanks to a softening of the dollar.

"A weakening dollar has added support to oil today," said Rebecca Hermolle, an analyst at energy consultancy Inenco, in reference to crude becoming cheaper for buyers using rival currencies, which in turn lifts demand.

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The dollar had been rallying strongly for several weeks, hitting last Friday its highest level in two years against the euro and six years against the yen.

The world oil output situation meanwhile appears to be very healthy.

While output has surged in the United States owing to oil extracted from shale rock, Libya is pumping out more crude after an end to a blockade by rebels that had halted exports.

And last week, the world's largest oil producer Saudi Arabia cut its crude prices for the fourth straight month to defend its market share.