Oil prices fell nearly $2 today as weak demand and the global economic crisis put crude on track for its biggest monthly drop ever.
US crude fell $1.79, or more than 2.7%, to $64.17 a barrel by 5.11pm. It is down by around 35% for October, its steepest monthly decline to date, as demand slows in the United States and other big consumer nations.
London Brent crude traded $2.14 lower at $61.57.
Data released yesterday showed US gross domestic product contracted at an annual rate of 0.3% for the third quarter.
It was the sharpest fall in the world's largest oil consumer in seven years and provoked further falls across commodities and global stock markets.. A stronger US dollar, which makes dollar-denominated assets less attractive to buyers, added to the pressure on commodities.
In three months oil has wiped out gains that took more than a year to build. It has lost more than half of its value since it struck a record high of $147.27 in July.
