Crude oil dropped below US$55 a barrel on Monday as the news that Japan has entered recession exacerbated the worries about global economic slowdown.

Light, sweet crude for December delivery fell US$2.09 to end at US$54.95 a barrel on the New York Mercantile Exchange. It is the lowest settlement price since January 29, 2007.

Japanese reported a fall of 0.1 percent in its economy in the third quarter, following a 0.3 percent drop in the second quarter, which signaled that the world's second-largest economy is in a recession. The report added to the concerns that the weak global economic conditions will further curb energy demand.

Another blow to the investors came from Citigroup as the US fourth largest bank by market value said it plans to cut another 52,000 jobs. US stocks sank after the announcement.

With oil prices down nearly 63 percent from record high of US$147.27 a barrel reached on July 11, OPEC is reportedly considering an earlier meeting to discuss production quotas.

In London, Brent crude for January delivery fell US$1.64 to US$52.60 a barrel on the ICE Futures Exchange.

(Xinhua News Agency November 18, 2008)