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Oil briefly dropped below $55 Friday to its lowest level since mid-2005 amid fund selling across commodity markets on worries of an economic slowdown in the world’s largest energy consumer, the United States.

High U.S. oil inventories heading into winter, and selling pressure ahead of the expiry of the front-month U.S. crude contract at the close of trading Friday, fueled the selling.

U.S. crude was down 61 cents at $55.65 a barrel at 1600 GMT after hitting its lowest level since June 14 last year at $54.86. The price has fallen nearly 30 percent from the record of $78.40 in July. London Brent crude rose 11 cents at $58.65.

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“There is rising concern that we could be going into a U.S. economic slowdown,” said Rick Mueller, senior oil analyst at consultancy ESAI. “This fall also speaks of a well supplied crude market and a warmer outlook in the U.S., and with those conditions maybe the market is starting to wake up to the fact that prices shouldn’t be near $60.”

There was also widespread talk in the market that a fund was in trouble and unwinding its positions.

Base metals also slid on concern that if the world’s largest economy slows, global demand for raw materials would also suffer. London copper prices slid to their lowest levels since June on Friday.

U.S. industrial output data for October on Thursday was weak, showing signs of a cooling economy.

Oil markets had traded in a roughly $58-$62 barrel range for around six weeks, the longest period of range-bound trading since the same time a year ago

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Hundreds of thousands of people on Saturday marched in Caracas to support opposition presidential candidate Manuel Rosales, whose populist campaign has focused on reducing crime and redistributing oil wealth.

Rosales, governor of the oil-rich Zulia state, trails leftist President Hugo Chavez by around 20 percentage points in most private polls ahead of the December 3 election.

Chavez is a close ally of Cuba and fiercely opposes the Bush administration even though Venezuela provides around 12 percent of U.S. oil imports.

Opposition sympathizers donning Venezuela’s signature red, yellow and blue patriotic colors joined the march, which spanned some 12 miles across most of the capital city.

“Rosales is our last hope to prevent this country from becoming another Cuba,” said 53-year-old engineer Antonio Romero, who marched with his family carrying Venezuelan flags.

Rosales promises to end Chavez’s confrontation with the Bush administration, redistribute bountiful oil revenues and reduce soaring crime rates throughout Venezuela.

Opposition leaders also accuse the Chavez government of drawing up blacklists to intimidate voters and requiring public employees to join pro-Chavez campaign activities.

“Enough of being afraid in this country,” said Angela Barrera, 28, a graphic designer whose face was painted with the colors of the Venezuelan flag. “On December 3, what will be heard is the voice of the people who want a future.”

A video released this week showed the nation’s top energy official saying the government should not employ oil workers opposed to Chavez — statements Chavez himself later backed despite intense criticism

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