Oil prices fell below $39 a barrel this evening on a string of weak economic data confirming the global downturn. US crude fell $1.55 to $38.36 a barrel, while Brent dropped by $1.90 to $39.55.
The world's top economy, the United States, shrank an unrevised 0.5% in the third quarter, official data showed. Consumer spending plunged 3.8%, the biggest drop since 1980.
The UK economy shrank by more than expected in the third quarter, while a record decline in Japanese exports also increased anxiety about the condition of the world economy.
Signs that oil demand is likely to contract for the first time in a quarter century have already knocked oil prices more than $100 off their July peaks.
The Organisation of Petroleum Exporting Countries has cut about 5% of world supplies to counter the collapse in demand, last week agreeing an unprecedented 2.2 million barrels per day reduction and appears ready to do more if needed.
