As the global economic crisis slashes demand for oil, prices have tumbled to a 16-month low of $66.75 on the New York Mercantile Exchange.
It is the lowest close since June 13 last year, and less than half the $147 high seen during the credit-crunch speculation in July.
UK petrol prices dropped as low as 97.9p this week as Britain's leading fuel retailers made a further round of reductions. The Petrol Retailers Association (PRA) said it expects further cuts over the coming months.
Morrisons supermarkets were first to make reductions, knocking two pence off the price of unleaded petrol and diesel to 97.9p respectively. Asda and Tesco quickly followed suit.
Oil's slide has continued despite Opec saying it is considering a cut in supplies to stabilise prices.
Cartel president Chakib Khelil said that members planned to announced a "substantial" cut. He said Opec considered the oil market to be oversupplied by about two million barrels a day and that the group may cut output again in December.
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