Mumbai: Crude oil prices hit a 14-week low near $113 a barrel on concerns of falling consumption in China and signs of a US economic slump extending into the next year as well. The fall was also aided by dollar's gains against the euro and the yen.

The oil market also discounted concerns of supply disruptions following the conflict in Georgia, a main transporting point for Caspian oil and gas.

US light, sweet crude for September delivery was trading $1.41 lower at $113.04 a barrel. The contract fell $0.65, to $113.80 a barrel in Asian trading. The contract lost $0.75 overnight, to settle at $114.45, the lowest close since 1 May.

In after hours access trading, crude was at $113.95 per barrel.

In London, the September Brent contract on the ICE futures exchange was down $1.62 at $111.05 a barrel.

The ICE's gasoil contract for August delivery was down $11.75 at $1,007.25a metric ton, while Nymex gasoline for September delivery was down 331 points at 283.35 cents a gallon.

Nymex crude is down about $33, or 22 per cent, from its high of $147.27 on 11 July.

Crude futures had gained gained over the weekend as the conflict in Georgia caused concerns about the potential disruptions of pipelines in the area. Price rose to $116.90 a barrel in the early morning trade.

But the gains were lost after a cease-fire was proposed and different factors brought oil prices to as low as $112.72 a barrel.

The dollar gained strongly against the euro and the pound sterling on Monday, which reduced the crude's appealing as the hedge against inflation.

Reports that China's crude oil imports in July were down 7 per cent from last year also fuelled expectations that the economic slowdown might be spreading to Asia and affecting demand for oil.

A stronger US dollar also pushed prices down. The dollar stood at 1.4879 against the euro and was holding above 110 yen.

The market also discounted fears of supply disruptions due to the escalating conflict in Georgia, a key transporting point for Caspian oil to western markets.

Traders are now waiting for the weekly US inventory data due to be released on 13 August.