Crude prices hit a level of $75.62 a barrel, the lowest in 13 months, amidst signs of a weakening of demand and a fall in the vale of the US dollar.

US sweet light crude on the New York Mercantile Exchange fell to $75.62 a barrel, its lowest price since September last year. Prices, however, rose marginally to  $75.96 a barrel, but was still down $2.67 from its previous day's closing price.

Prices of North Sea Brent crude dropped $2.58 cents to $71.95.

Oil prices have halved from the July highs of $147 a barrel.

Oil's fall has also been aided by an across-the-market fall in stock prices and a weak dollar, which fell against the yen as recession fears returned.

A recession may further dent oil demand in the world's top consumer, the United States, and other key consumers.

Traders attribute the decline also to an expected rise in US oil stockpile. The inventory data is forecast to show a 1.9 million barrel rise in crude, a 600,000 barrel rise in distillates and a 2.9 million barrel rise in gasoline.

Oil also got little support from the 13-nation Organisation of Petroleum Exporting Countries (OPEC), which has already hinted that output will only be cut at their next meeting in November.

OPEC, which cut its forecast for demand this year by 330,000 barrels a day, also  lowered its 2009 demand forecast for a second time. The group expects oil consumption to drop 450,000 barrels a day, or 0.5 per cent, to 87.21 million barrels a day.

The group lowered its own demand for crude in 2009 by 190,000 barrels a day, or 0.6 per cent, to 31.14 million barrels a day. OPEC also lowered its forecasts for supplies from outside the group this year and next.

Oil consumption in developing countries will still increase 2.6 per cent to 25.72 million barrels a day next year, OPEC said.

Last week, the International Energy Agency,(IEA) had lowered its projection for global oil demand next year by 0.5 per cent to 87.2 million barrels a day.

OPEC will hold an extraordinary meeting on 18 November in Vienna, to follow up its decision to trim excess supplies. The oil cartel also told members to strictly comply with production quotas, implying a cut of about 500,000 barrels a day.