Oil prices fell this evening on concerns that the swine flu outbreak could further depress fuel demand, which has already been hit by the global financial crisis.
US crude oil was down 83 cents at $49.31 a barrel, off earlier lows of $48.55. London Brent fell 92 cents to $49.40 a barrel.
The new strain of swine flu virus that has killed up to 149 people in Mexico has spread to more countries, including Israel and New Zealand, raising the spectre of a pandemic and hurting financial markets.
The flu has hit airline stocks on expectations travel will be curtailed, and analysts warned jet fuel demand may slump, citing the drop in consumption that corresponded to the SARS epidemic in 2003.
Oil demand has already tumbled due to the global economic crisis, which has sent prices off record highs over $147 a barrel in July. Some industry experts said that with demand already depressed, the effects of the swine flu could be muted compared with SARS.
