LONDON, Nov 11: Oil prices sank under $55 a barrel on Tuesday to strike a 21-month low as fresh recession jitters fanned fears about slowing global energy demand, traders said.

On London’s InterContinental Exchange (ICE), Brent North Sea crude for delivery in December plunged to $54.92 per barrel -- a level last seen on January 30, 2007. Brent later stood at $55.94, down $3.14 from Monday.

At the same time, on the New York Mercantile Exchange (NYMEX), light sweet crude for December tumbled to $58.32, the lowest level since March 21, 2007. The contract was later down $2.91 at $59.50.

Prices have now shed about 60 per cent since scaling historic highs above $147 in July on mounting evidence of slowing global economic growth and energy demand.

Crude oil prices on Tuesday extended earlier losses after Wall Street fell in opening trade, with investor sentiment unsettled by fears about a collapse of General Motors and more poor corporate news amid the credit crisis.

“The short-term focus continues to be on weak demand,” Barclays Capital analysts wrote in a research note to clients on Tuesday.

Crude oil prices closed up almost $2 on Monday, with sentiment boosted by hopes that China’s huge economic stimulus package would lift demand for energy.—AFP