Oil prices hit 20-month low

• Price fall could cut fuel prices
• Oil prices now back at 2007 levels
• Production cuts could increase price, though

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Oil prices have plunged to a new low, raising the possibility of further cuts in fuel prices.

Crude fell to its lowest level since the start of 2007 as a result of lowering demand and fears over global economic instability.

Prices dropped to less than $55 a barrel, 60% below the record high of $147 it hit in July.

However, while the falling price raised the prospect of a short-term drop in fuel prices, there are concerns that oil producers will cut production, forcing them back up.