Crude oil continued to fall yesterday despite OPEC's decision to cut overproduction and drop in US inventory.

Light, sweet crude for October delivery dipped 68 US cents to settle at US$102.58 a barrel on the New York Mercantile Exchange.

OPEC's decision to cut supply of around half a million barrels a day sparked price rally in the early morning session.

Moreover, the US Energy Department's Energy Information Administration (EIA) said in its weekly report that crude supplies fell by 5.9 million barrels last week, and gasoline stockpiles fell by 6.5 million barrels. Prices climbed higher and hit US$104.97 a barrel after the EIA report.

But the dollar gained strongly against the euro, the sterling pound, and the Japanese yen, which sent the October crude futures down to as low as US$101.36 a barrel.

In London, Brent crude for October delivery fell US$1.37 to settle at US$98.97 a barrel on the ICE Futures Exchange.