Commodity prices hit their lowest levels in more than a year yesterday as the International Monetary Fund said the global economy faced economic downturn.

Crude oil fell to $86.05 a barrel, its lowest since December 2007, and copper, the bellwether of the base metal sector, to $5,250 a tonne, its lowest since March 2006. Other base metals, including zinc, nickel and aluminium, hit levels not seen in the past three and a half years.

The drop in oil prices triggered discussion among members of Opec about production cuts. The Algerian state news agency said the oil cartel might call an emergency session next month, ahead of its scheduled meeting in late December, to discuss the drop in prices.

Agricultural commodities, such as corn and wheat, also fell to their lowest levels for a year. The drop in raw materials prices was welcomed by the European Central Bank, the US Federal Reserve and other central banks.

In their statement justifying a half-point interest rate cut, the world's leading central banks said that inflationary pressures had started to moderate in some countries, “partly reflecting a marked decline in energy and other commodities”.

• [Editor:editor]