Oil prices slumped today to one-year lows under $80 per barrel, striking $75 in London, amid a global equities meltdown that sparked fears over demand for energy, traders said.
The International Energy Agency (IEA) also warned that the threat of recession and the ongoing financial crisis would erode oil demand and set back investment in new oilfields.
Brent North Sea crude for November plunged as low as $75 which was last witnessed on October 12, 2007 - as traders responded to renewed heavy falls on world stock markets.
The contract later stood at $77.23 a barrel, down $5.43 from yesterday. Today, New York's main contract, light sweet crude for delivery in November, plumbed a one-year low of $78.61 a barrel. It later stood at $79.94 down $6.65 from yesterday.
The sharp falls came despite news that OPEC will hold an emergency meeting next month on the impact of the markets crisis -- amid speculation that the crude producers' cartel could cut output to safeguard precious oil revenues.
"The deteriorating outlook for world growth is leading to a violent correction in commodity prices," said Deutsche Bank analyst Martin Lewis in a research note to clients.
"Further deterioration in the global GDP (gross domestic product) outlook could act as a trigger for lower oil prices," he said, adding that prices could fall to about $60 per barrel.
The price of crude oil has now slumped by almost 50 per cent since striking record high points above $147 per barrel on July 11.
Meanwhile, global stock markets suffered another calamitous sell-off today, as the ongoing financial crisis showed no signs of easing up, dealers said.
