Oil fell below $59 a barrel for the first time since May 2009 yesterday, extending a six-month sell-off as slowing Chinese factory activity and weakening emerging-market currencies added to concerns about demand.
International benchmark Brent crude has almost halved since reaching a 2014 high of $115 a barrel in June. Ample supply, slowing demand and a switch in strategy by Opec to defending market share rather than price have all hit crude prices.
A report showing that Chinese industrial activity shrank for the first time in seven months in December added to the concern. China is the second-largest oil consumer after the US.
Brent crude fell as low as $58.50, its weakest level since May 2009.
"The trend remains down," said Robin Bieber, technical analyst and director at London-based oil broker PVM Oil Associates.
Opec declined to cut output at a meeting on November 27 and has since shown no sign of reversing course.
Russia's energy minister said yesterday that Moscow would not cut production although it is reeling from the slump.
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