NEW YORK (AFP) — Oil prices tumbled Wednesday as supply concerns eased after a bigger-than-expected increase in gasoline reserves was reported in the United States.

The threat to supply from Hurricane Dolly in the Gulf of Mexico diminished as the storm veered away from offshore oil installations.

New York's main contract, light sweet crude for September delivery, dropped a hefty 3.98 dollars to close at 124.44 dollars a barrel.