Oil fell for a fifth straight session to below $53 on Thursday after US crude inventories climbed twice as much as expected, signalling an economic downturn is hitting hard and demand for fuel is falling.

Oil also took its lead from equities, which fell in the United States and Europe to their lowest in 5-½   years after US consumer prices dropped at a record pace in October and as prospects faded for a bailout of the US car industry.

US light crude for December delivery, due to expire later on Thursday, fell 68 cents or 1.3 percent to $52.94 a barrel. Wednesday's $53.62 a barrel was the lowest settlement since Jan. 22, 2007.

London Brent crude rose 48 cents to $52.20 at 0112 GMT.

"The lack of any positive news on the demand front as well as continued global economic turmoil continue to result in a dearth of bullish news," said Jonathan Kornafel, Asia director of Hudson Capital Energy.

US crude oil inventories rose 1.6 million barrels last week, twice analysts' expectations, according to data from the Energy Information Administration.

Total product demand fell by 7 percent against year-ago levels, the EIA reported on Wednesday, as consumption falls due to the economic crisis.

US Federal Reserve forecasts that the US economy will contract in the first half of next year and concern about the potential for deflation in the world's top oil consumer also weighed on crude prices.

Oil has shed almost two thirds of its value since its July record above $147 a barrel as demand in big consumer nations slows, prompting some members of the Organization of the Petroleum Exporting Countries (Opec) to call for further oil output cuts. - Reuters