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NEW YORK - Oil slumped $5 on Tuesday in New York on worries about the global economy, concerns on supply disruptions in the United States and Middle East ease and dollar rises.

Crude has slipped more than $10 this week as global equity markets fell signaling weak confidence on economic growth. Oil was up at its highest record of $145.85 a barrel on July 3. Still the economy of the United States is one of the greatest concerns since the country is the top consumer of oil.

Separately, today the Group of Eight said at a meeting in Tokyo that "The world economy is now facing uncertainty and downside risks persist." The group expressed "strong concerns" about the sharp rise in crude futures, according to a statement.

The G-8 represents U.S., Britain, Japan, France, Germany, Canada, Russia and Italy.

Crude oil futures for delivery in August fell $5.01 or 3.54 percent to $136.36 a barrel in the New York Mercantile Exchange by 12:08 p.m. Earlier oil had its steepest decline since March falling more than $6 to $135.14 a barrel. Analysts commented the decline was due to profit-taking sell from last week's record price.

Brent crude futures for three months delivery fell $5.21 or 3.68 percent to $136.33 a barrel in the London ICE Futures Exchange today. On July 3 futures surged to $146.69 a barrel.

Today commodities including gold, copper and corn also declined in the market.

U.S. supply disruption concerns slowed as the hurricane Bertha in the Atlantic ocean seemed to debilitate reducing possibility to affect refineries and extraction activity in the Gulf.

In the Middle East, worries on supply shortages in Iran eased after the country provided an undisclosed response to an international deal if it suspends a central part of its nuclear program. Today, Iran's president Mahmoud Ahmadinejad said he is in favor of resuming dialogue and prevent confrontation.

Iran is the second largest producer of crude in the Organization of Petroleum Exporting Countries which provides 40 percent of global oil. Last week Iran threatened blocking the Strait of Hormuz - a key oil flow channel- if its nuclear facilities are attacked.