Oil sank below $54 a barrel on Wednesday, as the prospect of a global drop in demand due to the economic downturn pushed prices lower for a fourth consecutive session.

Nymex December West Texas Intermediate fell to $53.30 a barrel, a fresh 22-month low, before paring losses to trade 45 cents lower at $53.62. ICE January Brent lost 12 cents at $51.72, having earlier hit a low of $50.61.