Oil prices fell sharply below $50 a barrel yesterday as a strengthening US dollar triggered further selling of crude.

Prices for West Texas Intermediate settled at $48.54 a barrel in New York, a fall of $1.91 on the day in a continued reaction to data this week showing high US stockpiles of crude and falling global demand. This was more than 16 per cent lower than the record nominal high of $58.28 hit in April. Brent crude for June delivery shed $1.73 to $48.34 a barrel.