Light, sweet crude for December delivery fell 56 cents to settle at 54.39 U.S. dollars a barrel on the New York Mercantile Exchange. It is the lowest settlement price since January 2007.

    Worries of weak economy continues to weigh on the market. The latest demand warning sign comes from the car industry as the biggest three U.S. automobile makers struggled to get government aid to stay in business.

    U.S. domestic fuel demand is on the decline as the American Automobile Association predicted on Tuesday that less people would travel during the upcoming Thanksgiving holiday next week, the first decline since 2002.

    With oil prices down 63 percent from record high of 147.27 dollars a barrel reached on July 11, OPEC is reportedly considering another output cut before December. Iran has called for talks with non-OPEC suppliers on production cut.

    In London, Brent crude for January delivery fell 32 cents to 51.99 dollars a barrel on the ICE Futures Exchange.