Oil price hits five-year low as fears grow over supply and demand

Global oil prices plunged on Monday to a new five-year low as traders fretted over gloomy data, demand worries and surplus supplies. In early afternoon London deals, Brent North Sea crude for delivery in February sank to $54.44 per barrel, hitting the lowest level since May 2009. U.S. benchmark West Texas Intermediate for February sank to a similar low at $51.16. “Oil endured brand new five-year lows,” said analyst Connor Campbell at trading firm Spreadex.

The black stuff is still looking abandoned and lost as 2015’s trading begins in earnest, and continues to be a stain on the worldwide markets.

Analyst Connor Campbell of trading firm Spreadex

Crude has lost nearly half its value since June because of a global supply glut, as well as slowing growth in China and emerging market economies, a recession in Japan and a near stall in the eurozone. The OPEC oil-producing cartel in November said it would maintain output levels despite ample global supplies, in part because of cheaper oil extracted from North American shale rock.

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