Oil prices resumed their downward march today as crude demand fell in the global economic slowdown.
New York's main futures contract shed $1.29 to $42.38 a barrel.
Brent North Sea crude fell 79 cents to $44.60.
Oil prices had ended slightly higher yesterday after the US - the biggest crude consuming nation - announced a sharp increase in its energy stockpiles.
The US Department of Energy said crude inventories had soared by 6.1 million barrels last week - far more than analyst expectations for an increase of around two million barrels.
Oil prices have plummeted from record highs above $147 in July because of a worsening global economic slowdown that has dented demand. Hopes of a pick-up in demand were not helped as it was revealed yesterday that unemployment claims had hit a 26-year high and housing construction fallen to half-century lows in the US.
Britain is meanwhile in recession for the first time since 1991, official data showed today.
Oil prices had jumped higher Wednesday on hopes that new US President Barack Obama would help pull America out of recession. The market also got brief support from evidence of OPEC production cuts.
OPEC, whose member nations together pump about 40% of world crude, would consider further cuts to oil production if prices continued to fall, Algerian Energy Minister Chakib Khelil had said last week.
