Oil prices hit 20-month low

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.