US benchmark West Texas intermediate for delivery in February dived $2.01 to $51.10 per barrel the lowest level since early May 2009.
The market is still worried that there are no signs that the supply glut will start falling.Nordea Markets analyst Thina Margrethe Saltvedt.
James William of WTRG said the weakness in the market could take prices below $40 a barrel.
Basically,there are continuting concerns about OPEC not cutting back,particularly Saudi Arabia and Us production continuting to grow,he said.
That appeared to confirm Riyadh determination to defend its market share rather than reduce output even if that pushes prices lowers.
On Monday Saudi Arabia reportedly cut its European and US export prices in order to maintain market share.
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