The price of oil dipped to $108 a barrel today, due to concerns among investors that rising prices may curb demand from the US and China.

US crude dropped 51¢ to stand at $108.32 a barrel, while Brent crude fell by 54¢ to $121.76 a barrel, reports Reuters.

High crude prices have forced up retail fuel prices, further strengthening inflationary pressure on economies from the rising costs of food and raw materials.

Turbulence in the oil-exporting regions of North Africa and the Middle East continues to support prices on fears that the unrest may further hinder oil supplies after Libya’s civil war interrupted its oil flow.

Saudi Arabia and the United Arab Emirates have increased their output to balance the supply loss from Libya, but there has been no coordinated supply policy response from OPEC to rein in high prices.