The price of oil continued to fall this morning as the world’s economic woes threaten to reduce demand.

Brent crude fell £2.80 to $68 a barrel, well below its July peak of $147, to touch its lowest level for more than 15 months.

Forecasts for global demand growth have been scaled back as the strain on the economy worsens. Opec yesterday cut its growth forecasts for this year and 2009, largely because of an “excessive” easing of demand in the US.

The falling oil price is likely to be good news for cash-strapped consumers, who yesterday saw petrol prices drop below £1 a litre for the first time since December, with supermarkets Asda and Morrisons cutting their prices.

British Airways and Virgin Atlantic announced they would reduce their passenger fuel surcharges to reflect lower fuel costs.

However, Opec is expected to unveil measures to try and support the oil price next month at an emergency meeting in Vienna.

In the shorter term, prices may fall further this afternoon as US weekly oil inventory data are expected to show that stocks rose for the third straight week because of weak demand.

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