Oil prices plunge amid recession fears

Global recession fears sent oil prices to their lowest level for almost a year today.

Light, sweet crude for November delivery traded on the New York Mercantile Exchange (Nymex) dipped as low as $86.05 a barrel today amid fears the global credit crisis would weaken demand.

That was the lowest price since October 23 last year.

Crude ticked up a couple of dollars after co-ordinated action by central banks to cut interest rates by 0.5%, hovering around $88.50. Lower rates could tempt more investors to opt for oil rather than other investments.

In London, November Brent futures fell to $81.84 today, their lowest level since the middle of October.

Oil prices still remain around 40% less than the $147 high recorded three months ago.

On the forecourt, petrol and diesel prices have also been falling but nothing like at the same rate as oil.