Oil fell more than 6% today to its lowest level in nearly four years in response to further bleak economic data that could spell a deeper decline in global energy demand.
The number of US workers on jobless rolls hit a 26-year high last month, the US government said, while another report showed US factory orders fell sharply for the third month in a row.
US light crude dropped $2.86 to $43.93 a barrel by 6.13pm after slipping as low as $43.77 - the lowest since January 2005. London Brent crude fell $2.87 to $42.57.
Oil prices have dropped more than $100 a barrel from record highs over $147 in July, as the global credit crunch has eaten into demand in large consumer nations.
A US Commerce Department report showed that factory orders in October plunged 5.1%, the biggest drop since July 2000, and a Labor Department report showed that the number of US workers on jobless benefits rolls was the highest since December 1982. AT&T Inc and DuPont Co led the list of blue-chip US companies laying off workers in the weeks before the Christmas holidays.
OPEC will consider another round of output curbs to try to defend prices when it next meets on December 17 in Algeria.
Oil rose briefly yesterday when US Energy Information Administration data revealed an unexpected fall in fuel inventories last week in the world's top energy consumer.
But US refinery utilisation fell 1.9% to 84.3% of capacity against a predicted rise of 0.2%, pointing to weak demand.
