Oil prices tumbled 6% today on expectations that demand would slow further after the IMF predicted developed economies would deliver their worst performance since World War II.
US crude traded down $4.15 at $61.15 a barrel by 5.37pm, after hitting a 19-month low of $60.16 earlier and extending yesterday's 7% drop.
London Brent Crude dropped $3.92 to $57.95 a barrel.
The IMF said it now expected 2009 global economic growth of 2.2%, down 0.8%from its October forecast. It also lowered its 2009 baseline oil price projection to $68 a barrel from $100.
Oil prices have dropped from record highs above $147 a barrel in July as the growing global economic crisis damps demand in developed economies.
US government data released on yesterday showed an unexpected rise in gasoline stocks last week, following a 2.3% fall in demand in the world's biggest energy consumer.
The International Energy Agency said today the world will have to live with the risk of an energy supply crunch and an oil price well above $100 a barrel in the years to come.
