Crude oil futures fell 2.4 per cent, to the lowest level in more than a week, as Norway’s government managed to stop an oil industry lockout planned for midnight by oil workers.

Crude for August delivery lost $2.08 to settle at $83.91 a barrel on the New York Mercantile Exchange, the weakest settlement since the start of the month.

Oil prices came under pressure after Norway intervened last minute on the country’s longest ever oil strike. Oil workers have been asked to engage in negotiations over pay.

On Monday oil prices had jumped nearly 2% on concern about a looming lockout but news of the lockout being averted sent oil prices sharply lower again.

The European benchmark Brent for August fell $1.37 at $98.94 a barrel on ICE Futures in London.

Among precious metals gold lost 0.6% as the stronger dollar and ongoing concern about the Eurozone crisis prompted selling.

Gold for August delivery fell $9.30 to settle at $1,579.80 an ounce on the Comex division of the New York Mercantile Exchange.

CJ