London/Mumbai, Nov. 20 (Reuters): Oil plunged below $50 a barrel on Thursday, deepening losses over the previous four sessions as battered financial markets reflected ever lower confidence in the world economy and evidence mounted of falling fuel demand.

US crude fell $3.71 to $49.91 a barrel by 1402 GMT, the weakest level since January 2007. London Brent crude shed $3.10 to $48.62 a barrel.

As economic slowdown has destroyed fuel demand, oil companies plan to store millions of barrels in the hope things will improve. Shipping brokers said US oil trader Koch and Royal Dutch Shell had booked supertankers capable of storing 10 million barrels of crude, more than top exporter Saudi Arabia produces in a day.

Oil has lost about two-thirds of its value since July’s record of above $147, in part because a global credit crunch has made investors pull their money out of riskier assets.

Sensex, rupee fall

The Bombay Stock Exchange sensex fell 323 points to 8451.01, its lowest in three years, as bears continued to prowl the market for the seventh day today.

It recovered partially after touching an intra-day low of 8316.39, as a fresh dip in inflation at 8.90 per cent led to anticipation that the Reserve Bank might further ease monetary stance. The BSE bellwether recorded a net fall of 322.77 points, or 3.68 per cent, from its previous close at 8308.93.

The rupee today ended at a record low of 50.21, cheaper by 18 paise against the dollar because of the exodus of foreign investments and tumbling equity markets. Dealers said heavy dollar selling caused a high level of volatility, with the rupee moving widely in a range of 49.88 to 50.60.