Crude oil settled below US$47 a barrel on Tuesday as the concerns about the weakening economy and slumping demand continued to weigh on the market.

Light, sweet crude for January delivery fell US$2.32 to settle at US$46.96 a barrel on the New York Mercantile Exchange. It is the lowest level since May 20, 2007, and is more than US$100 down from oil's record high of US$147.27 a barrel reached in mid-July.

Investors are concerned that the US consumers and businesses would further cut back on energy consumption after the US National Bureau of Economic Research announced on Monday the world's largest oil consumer officially entered a recession in December 2007.

Moreover, high unemployment rate and floundering auto industry have also exacerbated the worries about US economy.

Investors have also been waiting to see what decision the OPEC will make when the cartel meets on December 17 to discuss the crude prices.

In London, Brent crude fell US$2.27 to US$45.70 a barrel on the ICE Futures Exchange.

(Xinhua News Agency December 3, 2008)