Oil down 50pc from July high

Oil prices fell for a third day on growing evidence of a global slowdown, with a barrel of Brent crude down more than 50pc on its July peak of $147.

Oil has followed movements in equity markets this month and with share prices in London down 3pc just before lunch, the price of a barrel slid more than $3 to $67.62.

Tightening credit has eroded demand and pushed prices down 18pc from a year ago, and 51pc from the record $147.27 a barrel reached on July 11.

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The Organization of Petroleum Exporting Countries yesterday cut its forecast for demand next year by 450,000 barrels a day, or 0.5 pc, to 87.2m barrels a day because of “dramatically worsening” financial market conditions.

“Demand not just for energy but across all consumer products is going to be hit,” said Jonathan Kornafel, a director for Asia at Hudson Capital Energy in Singapore.

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“That’s just going to export recession to Asia and the manufacturing economies. Next year is not going to be pretty.”

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