Crude oil slid more than 6 percent to close below US$44 a barrel yesterday as the deepening recession exacerbated demand concerns.

Light, sweet crude for January delivery tumbled US$3.12 to settle at US$43.67 a barrel on the New York Mercantile Exchange, which is the lowest level since January 2005.

The oil market remains bearish as negative economic reports keep rolling out, adding to the worries over slumping demand. The US Labor Department reported that the jobless benefit claims reached 4.09 million last week, the highest level since December 1982. Meanwhile, the US factory orders dropped 5.1 percent in October, the largest decline since July 2000.

In Europe, official figures showed the euro zone plunged into a recession in the third quarter of this year. Even the rate cuts by European central banks yesterday helped little to lift the market sentiment.

Crude oil has shed 70 percent from its record high of US$147.27 a barrel reached in mid-July. Merrill Lynch & Co. predicted yesterday that the price may dip below US$25  barrel if the recession continues to spread.

In London, Brent crude for January delivery fell US$3.16 to settle at US$42.28 a barrel on the ICE Futures Exchange.