Oil slips below $58 on global growth pessimism

Oil prices dropped below $57 a barrel Wednesday as a Bank of England warning about the risk of deflation stoked fears of stagnating global growth.

Light, sweet crude for December delivery was down $2.49 at $56.85 a barrel on the New York Mercantile Exchange. Oil prices have plunged more than 60 percent in four months, falling from a record $147.27 in July.

Phil Flynn, an analyst at Alaron Trading Corp., said London's expectation that inflation will fall below its target of 2 percent next year plays into a strong dollar; when a country's inflation rate falls, it is less likely to raise interest rates, a move that would support its currency against the …