Oil below $50 on fears of prolonged slowdown

NEW YORK: Oil prices plunged over $3 yesterday, briefly dipping below $50 a barrel as 16-year high US unemployment figures and plummeting stock markets caused investors to price in lower crude demand.

Light, sweet crude for December delivery was down $3.25 to $50.37 a barrel in electronic trading on the New York Mercantile Exchange by early afternoon in Europe.

Crude briefly dipped below $50 for the first time since Jan 18, 2007 when prices struck $49.91, just a penny above the 2007 low.