Crude oil prices fell to levels around $50 a barrel today as the market continued to battle fears of a sharp fall in consumption and demand amidst a deepening financial market crisis and mounting fears of a continued global economic downturn.

US light sweet crude on the New York Mercantile Exchange fell $3.12 to $50.50 a barrel in early trade, just off a session low of $50.22, the weakest level since January 2007.

North Sea Brent crude on the London market shed $2.70 at $49.02 a barrel.

The average price for OPEC crude basket had slipped by $0.66 on Wednesday.

One barrel (159 litres) of OPEC crude stood at $45.89 on Wednesday, down from $46.55 on the previous day, the Vienna- based body said today.

OPEC calculates an average basket price based on 13 brands produced by its members.

Oil has lost around $93 a barrel - about two-thirds of its record value above $147 posted in mid-July since the credit crisis unfolded and a slowdown set in in major economies.

OPEC is likely to announce a further cut in production when they meet tomorrow.

Meanwhile a report by the US Energy Information said that US supplies of crude climbed last week, although distillates stockpiles fell unexpectedly.

Analysts expect a further production cut by the OPEC to get prices back to around $60-70.
OPEC members have lost about $700 billion because of falling crude prices, BBC quoted its president Chakib Khelil as saying in an interview.

OPEC, meanwhile, slashed its projection of global oil demand growth both this year and next year citing the current "world economic turmoil."