Oil prices slid further on Thursday as the global credit crunch and fears for slowing energy demand took their toll, with prices now down about 50 percent from July's record highs.
US light, sweet crude fell $2.44 to $72.10 a barrel. London Brent crude fell $2.31 to $68.49 a barrel.
Oil prices are about half what they were in July this year, when they hit a record above $147 a barrel.
"The market is just very worried about a severe international economic downturn," said David Moore at Commonwealth Bank of Australia.
"They're thinking that oil consumption will be weaker than expected."
On Wednesday, US economic data showed that retail sales fell 1.2% in September, a sign that consumers were tightening their belts.
Also the US central bank's Beige Book report, which reflects the economic conditions, said the economy had showed further signs of contraction, fanning fears that the US economy is already in a recession.
According to Mr Moore, oil cartel group Opec is tipped to cut production when it next meets in November.
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