Crude falls below $48 on US recession

Crude oil fell to the lowest in more than three years on signs the US, the world's largest energy consumer, may be in the longest slump since World War II. Crude oil for January delivery dropped as much as $1.92, or 3.9%, to $47.36 a barrel in electronic trading on the New York Mercantile Exchange. That's the lowest since May 20, 2005. Brent crude oil for January settlement fell as much as $1.95, or 4.1%, to $46.02 a barrel, on London's ICE Futures Europe exchange, the lowest intraday price since Feb 18, 2005. Oil prices have tumbled 68% since reaching a record $147.27 on July 11 as the US, Europe and Japan face their first simultaneous recession since World War II. The US first entered a recession in December 2007, the panel of economists that dates American business cycles said. US manufacturing output in November contracted at the fastest pace in 26 years, a report showed. Crude pared losses as the dollar weakened against the euro, making commodities more attractive as a currency hedge.