NEW YORK, April 1, 2008 (AFP) - World oil prices declined further Tuesday, slightly extending sharp losses from a day earlier on rising concerns that slowing global growth could dampen energy demand, traders said.

New York's main oil futures contract, light sweet crude for delivery in May, closed down 60 cents at 100.98 dollars per barrel after earlier dipping as low as 99.55 dollars.

In London, Brent North Sea crude for May delivery settled 13 cents lower at 100.17 dollars per barrel. Prices in London had earlier tumbled as low as 98.99.

World oil prices continued falling after New York crude had slumped by a sharp 4.04 dollars and London Brent had dived by 3.47 dollars during Monday trading.

'Market participants still remain concerned over slowing fuel demand in the US, with figures last week showing US oil demand over the last four weeks averaging around 2.2 percent lower than one year ago,' said Sucden analyst Andrey Kryuchenkov.

'It seems that consumers are starting to feel record high gasoline prices and refineries are cutting down on their production due to slipping profit margins.'

Crude oil prices have fallen since Friday when a US government report confirmed that the world's largest economy grew by a tepid 0.6 percent in the fourth quarter of last year amid a widespread housing slump and a related credit squeeze.

Economic momentum has slowed despite the US Federal Reserve's interest rate cuts. Since September, Fed policymakers have slashed the short-term federal funds rate to 2.25 percent from 5.25 percent in a bid to shore up growth.

'Oil pricing has pulled back due to profit taking at the end of the first quarter,' said Victor Shum, a senior principal at Purvin and Gertz energy consultancy in Singapore.

'Market sentiment has turned bearish given the latest data out of the US, which showed softening demand,' he added.

Shum said the market was expecting a 'downside potential' in demand leading up to the peak summer driving season in the United States but added that 'oil pricing would not collapse due to stronger demand growth in non-OECD countries.'

He was referring to the Organization for Economic Co-Operation and Development, which comprises major industrialized nations.

Crude prices have also been weighed down by easing of unrest in the oil-rich southern region of Iraq. An attack on a key Iraqi oil pipeline last week had sparked an oil price spike.

'Recent volatile price action in oil reflects well its underlying fundamental tightness, with markets proving highly sensitive to the flow of information on the geopolitical front,' said Barclays Capital analyst Kevin Norrish.

Amid global supply disruptions, New York crude hit a record intraday high of 111.80 dollars on March 17 while London Brent scored a historic peak of 108.02 dollars earlier in March.