Crude oil fell to the lowest in more than three years in New York on signs that the economy in the U.S., the world's largest energy consumer, is in a more severe economic slowdown than expected.

The U.S. first entered a recession in December 2007, the panel of economists that dates American business cycles said yesterday. The country's manufacturing output in November contracted at the fastest pace in 26 years, a report showed. Oil also declined after OPEC deferred a decision to cut supplies until a Dec. 17 meeting.

"What we're seeing right now is a once-in-a-generation type of economic collapse,'' said Jonathan Kornafel, a director for Asia at options traders Hudson Capital Energy in Singapore. "There is general agreement that the market has a bottom in the US$40s so it's difficult to get really short but at the same time there is no reason for this market to rally.''

Crude oil for January delivery dropped as much as US$1.92, or 3.9%, to US$47.36 a barrel in after-hours trading on the New York Mercantile Exchange. That's the lowest since May 20, 2005. It was at US$47.66 at 3:23 p.m. in Singapore. Oil prices have tumbled 68% since reaching a record $147.27 on July 11 as the U.S., Europe and Japan face their first simultaneous recession since World War II.

Crude is also under pressure after the United Arab Emirates' state-owned producer said it would provide full contractual volumes to Asian refiners.

"All the poor economic news plus the lack of clear indication of full compliance on the part of OPEC, means a further downturn is possible,'' said Victor Shum, senior principal at consultants Purvin & Gertz Inc. in Singapore.