LONDON (AFP) – Oil prices sank under 44 dollars on Thursday, reaching the lowest points for almost four years as the world's biggest energy consuming nation, the United States, faces a deep recession, traders said.
Brent North Sea crude for delivery in January slumped to 43.80 dollars a barrel in Asian trading -- the lowest level since February 20, 2005.
Later on London's InterContinental Exchange (ICE), Brent recovered to stand at 44.80 dollars, down 64 cents from Wednesday's close.
Light sweet crude for January fell 60 cents to 46.19 dollars a barrel on the New York Mercantile Exchange (NYMEX).
Economic activity weakened across the United States over the past several weeks with most sectors facing pressure, the Federal Reserve said on Wednesday.
The report came two days after the National Bureau of Economic Research said the US economy had been in recession since December 2007.
As recession sweeps through the world's richest nations, demand for energy is tailing off, causing crude oil prices to tumble.
Oil prices are more than 100 dollars below their record highs of above 147 dollars reached in July, when fears of supply disruptions had sent them rocketing.
"The scale of the correction so far would indicate further pain to the downside," Simon Denham of Capital Spreads said Thursday.
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