Oil prices tumbled under $50 today, as plunging equities and weak US data sparked fresh concern that a worldwide recession could ravage energy demand.
In New York, light sweet crude for delivery in December dived to $49.75 a barrel - the lowest level since May 2005. Brent North Sea crude for January tumbled to $48.20, which was also last seen in May 2005. Brent closed yesterday at $51.72.
Crude futures were pulled down by fears about the impact of the ongoing chronic global financial crisis, analysts said.
Oil prices have now plunged by about two-thirds since striking record highs above $147 in July as a global economic slowdown slashes worldwide demand for energy.
Stock markets plunged today as a jump in US jobless figures and fresh job cuts worldwide deepened fears of recession and sent investors fleeing for cover.
Oil prices went on to recover somewhat later this evening, with New York oil at $50.56 and Brent at $49.05 in late London trade.
