Oil prices slipped below $74 per barrel today to the lowest level since September 2007 amid growing fears that a broadening economic recession will sap global demand for energy.

The price of a barrel of Brent North Sea crude oil for delivery next month fell 79 cents to $73.74. Prices have now halved since July 11, when they touched a record of more than $147 a barrel.

“Market fundamentals are reasserting themselves,” said Damien Cox at John Hall Associates. “This is all about weakening demand.”

Mr Cox said the market was awaiting further evidence of falling energy demand in the US, the world’s biggest consumer.

Janet Yellen, a senior official with the Federal Reserve, said last night that the US now appeared to be “in a recession”.

The Department of Energy’s latest data on inventories are due out tomorrow and are expected to indicate further declines in US crude demand.

He said he expected oil to continue to weaken in the coming days.

OPEC are to hold an extraordinary meeting in mid-November. Officials from some member states have talked of a possible production cut to stem falling prices.

Countries such as Iran, Iraq and Venezuela are struggling to balance their budgets because of the sliding crude price.

The falls came as figures were published showing UK unemployment leaped at its fastest rate in 17 years during the three months to August.

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