LONDON - World oil prices fell again on Thursday after slumping by more than 10 dollars over the past two days on prospects that slowing economic growth would cut into demand for crude, traders said. New York's main oil contract, light sweet crude for August delivery, dipped 56 cents to 134.04 dollars a barrel, after shipping 4.14 dollars on Wednesday. That followed a dive of 6.44 dollars on Tuesday, the sharpest daily decline since January 1991. London's Brent North Sea oil for September dipped 41 cents to 135.40 dollars. The Brent August contract expired Wednesday down 2.56 dollars at 136.19. Sucden analyst Nimit Khamar said that the market was supported by strong fundamentals of supply and demand in the long term. However, he added: "In the short term there is a real concern about the health of economies globally." Prices have crumbled since striking record highs above 147 dollars per barrel last Friday. Losses accelerated on Wednesday after a bigger-than-expected rise in US crude reserves, analysts said. "Oil prices fell sharply again (on Wednesday) largely driven by an unexpected weekly rise in US oil and gasoline inventories," added Barclays Capital analyst David Woo. The US government's Energy Information Administration said crude inventories rose by 3.0 million barrels in the week ending July 11. That confounded market expectations for a decline of 2.2 million barrels. "The inventory report essentially indicated oil demand in the US is just very poor," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz. Traders were also watching developments in the Middle East after what appeared to be a sudden shift in US diplomatic policy toward Iran announced late Tuesday, which likely would impact the oil market, analysts said. The United States said it was sending Under Secretary of State William Burns to nuclear crisis talks on Saturday between Iran's nuclear negotiator, Saeed Jalili, and the European Union's foreign policy chief, Javier Solana. The US and other Western powers have been locked in a long-running standoff with Iran over its nuclear drive. Iran has repeatedly refused to heed United Nations demands to suspend uranium enrichment, insisting that its activities are exclusively aimed at energy production. Some Western nations are worried that Iran's nuclear programme could be aimed at making an atomic bomb. Iran is the world's fourth-biggest producer of crude oil, and tensions over its nuclear effort helped push prices to record heights last week.