Prices fall as worries about the economy continues to drag on demand.
NEW YORK (CNNMoney.com) -- Oil prices continued to plunge Thursday with prices falling below $50 a barrel for the first time in nearly two years as growing concern about the economy weighed on demand.
In the final day of trading for the December contract, U.S. crude futures fell $2.85 to $50.77 a barrel, after dipping as low as $49.75.
Oil last dropped below $50 in January 2007, and the last time it fell below $49.75 was May 25, 2005, when it traded at $49.58, according to CME Group, which operates the New York Mercantile Exchange.
A week of negative economic reports, combined with falling equities and indecision from Congress on a bailout of major automakers GM (GM, Fortune 500), Ford (F, Fortune 500) and Chrysler LLC have painted a dismal picture for fuel demand.
The economic slowdown continues to weigh on oil demand, said Phil Flynn, senior market analyst with brokerage Alaron Trading in Chicago. News has been "pretty doomy and gloomy on the oil outlook front," he said.
Curtsy-CNN Money
Rupesh Yatesh Dalal
