Oil prices fell toward $53, touching a fresh 22-month low on Wednesday, due to increasing signs of weakening demand as economic gloom deepened.
U.S. light crude fell as low as $53.30 a barrel, the cheapest price since January 2007. It was trading 69 cents lower at $53.70 by 0926 GMT.
London's Brent crude fell $1.23 to as low as $50.61.
Oil has slid by about one-third from its record highs above $147, struck in July.
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"With no end in sight for the global economic turmoil, traders continue to focus on the lack of demand heading into 2009," said Jonathan Kornafel, Asia director of U.S.-based options trader Hudson Capital Energy.
"It is becoming quite evident that demand may actually drop from 2008 to 2009."
European and Asian shares fell as Japan's No.3 bank joined larger rivals seeking to bolster its capital in the face of the worst financial crisis in 80 years. Markets fretted over the stricken U.S. car industry.
European Central Bank President Jean-Claude Trichet said the deep crisis was the first time since World War Two that the finances of the industrial world have been at stake.
The oil market was also closely watching U.S. weekly oil data due out at 1535 GMT on Wednesday as well as any moves from the Organization of Petroleum Exporting Countries (OPEC) at their meeting next week.
