Brent crude oil prices fell 1.32 per cent to $53.95 a barrel today, even though a statement by oil cartel Opec suggested growth in supply could begin to dwindle.
Meanwhile, WTI crude slumped to $44.30, a new six-year low for the benchmark. In just over a week, its price has fallen by nearly $10.
The fall is despite a suggestion from Opec that growth in production among non-Opec countries could begin to suffer as the oil price drops further. It said the full impact of falling prices on producers in the US and Canada "will become more evident in the comping months".
It added it expects US supply to rise by just 820,000 barrels per day in 2015, compared with an increase of 1.6m barrels per day last year. Among other non-Opec countries, production will rise by a similarly modest 850,000 barrels per day.
Jameel Ahmad, chief market analyst at FXTM, pointed out that the rout is likely to continue further.
I still do not think that the decline in WTI Crude has concluded, and we are approaching the $42 area that if prices extend below, could potentially send serious shockwaves throughout the financial markets. Recording a new milestone low this morning does point towards the picture that the bears are gearing up to steal the spotlight once again, and you just have to look at the comments from the International Energy Agency late last week to see that the bears still have enough ammunition to push prices even lower.