Oil slid below $37 a barrel today, heading for a fall of more than 60% in 2008 as the global economic slowdown bit deep into energy demand.
Crude oil hit an all-time high of more than $147 in July but prices have collapsed in the last six months as the credit crisis has pushed the industrialised world into recession.
Dismal data from the US yesterday added to pessimism that oil demand would suffer further in 2009, countering any support from Middle East tensions and hopes for another Saudi output cut.
Analysts forecast an average of $49 a barrel for US crude in the first quarter, and an average of $58.48 for next year, down $14 from their previous forecasts.
US crude oil futures for February dropped to a low of $36.94 a barrel, down $2.09, before recovering slightly. London Brent dropped $2.05 cents to a low of $38.10 before rallying to $38.25.
Oil jumped as much as 12% on Monday after Israel launched its air offensive on Gaza but prices slipped back quickly and analysts said they saw very little risk of the conflict disrupting oil supplies from the Gulf. Foreign powers have stepped up calls on the warring parties to call an immediate ceasefire.
