Crude oil prices plunged Monday owing to soaring supplies as well as stronger US dollar.

Light sweet crude for September delivery dropped 33 cents to settle at 70.60 dollars per barrel on the New York's Mercantile Exchange. Gasoline for September jumped
1.26 cents to settle at $2.04 per gallon.

London's Brent crude oil for September dropped 9 cents to settle at 73.50 dollars.

Phil Flynn, an analyst, said, "Prices are reluctant to rise also because of heavy supplies."

US dollar rose, backed by a report showing US unemployment rate falling in July.

It may be noted here that oil prices have nosedived from their peaks exceeding 147 dollars per barrel over a year earlier.

Traders are keeping a close eye on US Federal Reserve policymakers' meeting, which may make some alterations in the "quantitative easing."

Any change in interest rate could easily influence the dollar, which will in turn influence the oil market.