As recession in USA, Europe and Japan begins to set in, depressing global energy demand, crude oil has dipped to less than US$50/barrel in New York. Oil has ebbed to this level for the first time in almost two years, as the global economic crisis has cut back demand growth to its weakest in 23 years.
Crude oil for December delivery dropped to US$50.1 on NYMEX, after falling to US$49.91. The contract had last dipped lower than US$50 on January 18, 2007. Futures have dropped 66 per cent since reaching a record $147.27 on July 11. Crude oil's continuing slide will add to concern that the US economy faces deflation, threatening investment in oil and gas production projects.