Crude oil hits a 22-month low at $55 a barrel

13 November 2008

Crude oil hit a 22-month low of $55 a barrel on Thursday, as prices fell for a third straight day amidst increasing fears of a continued global economic downturn. The market also ignored OPEC's comments of another cut in output by end-November.

US light sweet crude for December delivery was down 95 cents at $55.21 a barrel in early morning trade on the New York exchange, after having fallen earlier to $54.67 - the lowest since 30 January 2007.

North Sea Brent crude on the London market fell $1.02 to $51.35, off an earlier low of $50.60.

On Wednesday, US light sweet crude for December delivery was ruling at $57.04 a barrel while Brent traded at 53.37 per barrel.

Oil prices fell 5 per cent overnight, following a sharp drop in US stocks with a shift in US government's planned use of its $700 billion bailout fund.

Oil is down about $91 (62 per cent) from its record high of above $147 struck in mid-July as the US financial crisis dragged banks and markets across down and risked global economic expansion.