By Jonathan Davies

Oil prices fell to their lowest level in four years in early trading in Europe.

Brent crude oil fell by $1.65 to $88.40 a barrel, the lowest price since November 2010. It comes as fears continue to grow over the state of the global economy.

The head of the International Monetary Fund (IMF), Christine Lagarde compounded those fears by warning that the eurozone could slip back into recession.

Yesterday, Germany's official statistics agency revealed that the country's exports fell by the biggest margin in five years during August. Germany is eurozone's biggest, but the especially weak export data prompted fears that it could slip into a third recession.

The fears over the global economy also had an impact on stock markets around the world. The FTSE 100 in London was down as much as 0.5% in early trading, while the Paris and Frankfurt markets were down by a similar amount.

Tokyo's Nikkei market was down 1.15% and the Dow Jones in the US fell by 2%, the biggest one-day fall for a year.

Earlier this week, the chancellor of the exchequer George Osborne warned that the ongoing problems in the eurozone will probably affect the UK's economy.

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