Brent oil price falls below $59 a barrel

The price of Brent crude oil has fallen below $59 a barrel for the first time since May 2009.

After dropping below $60, the Brent price then fell to $58.50 a barrel, before recovering slightly to $59.01.

Oil prices have now nearly halved since June as a result of waning demand and increased supplies.

The latest fall was triggered by news of a fall in industrial activity in China, the world’s second largest consumer of oil.

The price of US crude fell by $1.86 to $54.05 a barrel.

The drop came as members of oil cartel Opec reiterated that they would not try to shore up plunging oil prices by reducing production.

“We need to watch the market closely, but it will settle eventually,” Qatar’s oil minister, Mohammed al-Sada, said.

Russian energy minister Alexander Novak had the same message.

“If we cut, the importer countries will increase their production and this will mean a loss of our niche market,” he said.

The comments came a couple of days after the world energy watchdog, the International Energy Agency, cut its oil demand forecast for 2015.

Meanwhile, credit ratings agency Standard & Poor’s lowered its oil price assumptions to $70 a barrel for Brent in 2015 and $75 a barrel in 2016.

It blamed “relatively unconstrained supply and weaker demand” for the downgraded forecast.