Crude oil nears $50 as market confidence sinks

20 November 2008

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.